Daniel Wolfram
This policy shift by the White House is the latest example of the US pursuing sanctions relief for Russia.
President Donald Trump promised to end the war between Russia and Ukraine on his first day in office back in 2024. Nearly two years later, the war is still ongoing as more and more people lose their lives every day.
Trump has tried to strong-arm Volodymyr Zelenskyy into ending the war, but to no avail. He has taken a much different and softer approach with the brutal dictator Vladimir Putin.
First, Trump announced the diesel deal a couple of weeks back. And now he is considering further sanctions relief by releasing Putin’s wealth fund.
A surprise offer
The Trump administration is looking into lifting sanctions on a large Russian wealth fund, according to a report by The New York Times citing an unnamed American official. The Treasury Department is weighing the policy shift to improve ties with the Russian regime. Some in the administration believe it could help end the fighting in Ukraine.
The idea came straight from the Kremlin. Kirill Dmitriev, who runs the Russian Direct Investment Fund and serves as a special envoy, pitched the plan during talks over sending Russian diesel to American shores.
Before the war, Dmitriev was a master at luring foreign investors and spreading Russian financial clout across the globe. Even so, the fund carries a dark history. The United States originally sanctioned Dmitriev and the fund in February 2022, only four days into the invasion, with The New York Times reporting that Treasury branded it Vladimir Putin’s “slush fund.”
Diesel flowing to America
The sanctions relief hinges on a massive energy transfer. Under the proposed terms, Moscow would deliver more than 300,000 tons of diesel to the United States and global buyers right away. Another 500,000 tons would ship in November, with an additional million tons planned after that.
According to Donald Trump, Russia could inject up to three million tons more into the international market if Russian sanctions are removed. Supporters argue that flooding the market with fuel is a necessary move to drive down gasoline and diesel prices.
Critics are not buying that explanation. They warn that cutting penalties hands Moscow an unearned victory while bankrolling its battlefield operations.
Ukrainian President Volodymyr Zelenskyy has also sounded the alarm. He stated that even if Trump keeps dropping restrictions, it will not get Putin to end the war, calling the diesel deal a gigantic step in the wrong direction to achieve peace.
