Trump administration may let more Russian diesel onto market, energy secretary tells CNBC

President Donald Trump's administration is exploring the possibility of lifting sanctions on the Russian Direct Investment Fund (RDIF), according to sources familiar with the negotiations between Russia and the United States, as reported by The New York Times. Russia is urging for sanctions relief so that the RDIF can participate in supplying Russian diesel fuel to the United States, according to these sources.

The U.S. Treasury Department is currently evaluating the fund's application for sanctions relief through its usual processes, a source noted. The RDIF must demonstrate that the reasons for its sanctions are no longer valid. The fund is led by Kirill Dmitriev, a significant figure in the Russia-U.S. discussions and instrumental in fostering potential cooperative ventures between the two nations.

RDIF was created in 2011 to attract foreign investment to Russia, with its most recognized endeavor being the development of Russia's Sputnik V coronavirus vaccine. Dmitriev and his wife, Natalya Popova, are rumored to be in close proximity to Russian President Vladimir Putin's younger daughter, Katerina Tikhonova. President Joe Biden's administration sanctioned the RDIF on February 28, 2022, just four days after Russia initiated a full-scale invasion of Ukraine.

The U.S. Treasury Department described the RDIF as a "slush fund" for President Vladimir Putin, symbolizing Russia's broader kleptocracy, at the time of the sanctions. The strained U.S.-Russia relationship has been further exacerbated by recent developments, with Ukrainian President Volodymyr Zelensky accusing the Trump administration of using the RDIF as a front.

Congress has recently passed additional sanctions on Russia, and Trump has been considering business engagements with Moscow ahead of the potential conclusion of the war.