Writer Clarence | by AfterPost |17 October 26
Putin's envoy Kirill Dmitriev on Trump diesel deal says it signals recognition of necessity of closer trade relations. "More and more Americans, including within administration, understand sanctions harm United States itself. I can confirm US Treasury asked Russian Direct Investment Fund to help with diesel deal, including processing payments and resolving purely tactical issues. RDIF will be involved specifically at request of US Treasury."
Spoke Oct 16 at Russian Energy Week Moscow, per Reuters and TASS. RDIF blocked by Treasury since Feb 2022, yet Dmitriev says Treasury asked RDIF to "facilitate payments and solve tactical issues" for diesel arrangement Trump announced Oct 9 after call with Putin. RDIF "will work to ensure all payments efficient and reach intended recipients."
Deal: Russia supply diesel to US and global markets to lower prices ahead of midterms Nov 3. US diesel up 70% since Iran war Feb. Moscow partially lifted diesel export ban Oct 10. Kremlin says supplies reached international markets. Amount: 300k tonnes immediate, 500k Nov, 1M after, up to 3M depending on refinery condition. US Energy Dept identified Russian suppliers.
Why Dmitriev matters:
Head RDIF $10B sovereign fund, special representative for investment and economic cooperation, key figure in US-Russia Ukraine war talks. Regular channel to Witkoff, Kushner per reports. Presents diesel as model. Says "ice has begun to break" and further initiatives soon: joint projects Arctic, LNG, data centres powered by Russian nuclear plants, rare earths, uranium. No project names or timetables yet.
Also called Graham Act suspension Oct 16 "truly historic moment." Act signed Sept 18 would ban new US investment in Russia, impose 500% tariffs Russian goods and 100% on top buyers. Dmitriev: would effectively prohibit any investment cooperation, cause serious damage to US economy and global markets.
Contradiction layer:
Treasury asking sanctioned fund for help illustrates sanctions maze Dmitriev described: "So many layers piled on top of one another everyone confused, difficult to figure out how to navigate way out. Brainstorming sessions under way how to lift sanctions - that is exactly what US currently working on."
Per yacnews check, no waiver or licence covering data centres or Russian nuclear published by Oct 16, only GL 135 diesel. White House, Treasury, State had not confirmed Dmitriev claim by evening Oct 16. US Treasury asking RDIF would need specific authorization as RDIF sanctioned.
Reaction: Zelensky slammed diesel deal as betrayal, said eases Russia revenue financing war, could lead to gas deal. Senators McConnell, Tillis, Collins etc asked Trump kill deal enforce Graham Act. Bipartisan House 22 demanded revoke GL 135.
FAQ
Who is Kirill Dmitriev?
Putin's investment envoy, CEO RDIF sovereign wealth fund since 2011, Harvard MBA, manages Russian state investments, lead economic negotiator with US.
Is RDIF sanctioned?
Yes, blocked by US Treasury OFAC since Feb 28 2022, EU, UK. Any US persons dealings require license.
Did US Treasury really ask RDIF?
Per Dmitriev claim reported Reuters, AA, RIA Oct 16. No public confirmation from Treasury as of Oct 16-17. RDIF says request concerns payment processing.
What does sanctions harm US quote mean?
Dmitriev narrative: US realizes restrictions raise fuel prices, hurt US consumers, force search for waiver path. Part of push to normalize trade despite war.
Also read this: https://afterpostint.com/post/p-strong-trump-waives-graham-act-pauses-russia-sanctions-strong-p