The key facts

  • The U.S. Treasury is reviewing RDIF's application to lift sanctions; no final decision has been made yet
  • The issue is being discussed against the backdrop of the Trump-Putin agreement on Russian diesel supplies
  • Sanctions against the fund were imposed by the Biden administration in 2022

Treasury reviews the fund's application

The U.S. Treasury Department is reviewing an application from the Russian Direct Investment Fund (RDIF) for the lifting of sanctions, The New York Times reports, citing sources familiar with the Russian-American negotiations; Kun.uz also Kun.uzwrites about this. According to one of the outlet's interlocutors, under the procedure the fund must prove that the grounds that led to the imposition of the restrictions no longer apply. There is no information yet on a final decision to lift the sanctions.

What is known about the fund and the sanctions

RDIF was created in 2011 to attract foreign investment into Russia; one of its projects was the Sputnik V COVID-19 vaccine. The fund is headed by Kirill Dmitriev , one of the key participants in the Russian-American negotiations, who has repeatedly met with representatives of the Trump administration and promoted possible joint business projects. The administration of Joe Biden imposed sanctions on the fund four days after the start of Russia's full-scale attack on Ukraine. At the time, the U.S. Treasury noted that the fund was formally a sovereign investment fund, but many consider it Vladimir Putin's 'black cash box'.

Context: diesel supplies

The sanctions issue is being discussed against the backdrop of agreements on diesel: on October 9, after negotiations, Donald Trump announced that an agreement had been reached with Vladimir Putin on supplying Russian diesel to the U.S. market and the world market. According to his statement, Russia is to immediately supply more than 300 thousand tons, another 500 thousand tons during November, and then 1 million tons of diesel. Trump also noted that, depending on the condition of Russian oil refineries, a short-term additional supply of 3 million tons of fuel may follow, and that these volumes should lower diesel prices. The NYT views the discussion of lifting sanctions on the fund as an attempt by the Kremlin to use the diplomatic process on Ukraine to advance economic interests.