The U.S. Treasury Department is engaging in direct discussions with Russian economic envoy Kirill Dmitriev as part of efforts to explore potential economic cooperation between Washington and Moscow, according to Steve Witkoff, President Donald Trump’s special envoy. These talks also coincide with ongoing efforts to broker peace in Ukraine.
During a meeting in St. Petersburg with Russian President Vladimir Putin, Witkoff and Dmitriev addressed topics such as future trade relations, diesel supplies to the United States, financial arrangements, and Russian fertilizer exports. Witkoff emphasized that the U.S. Treasury is independently working with Dmitriev to identify economic opportunities that could arise if relations between the two countries improve. He also mentioned that discussions on postwar economic prospects have been held with Ukrainian officials, although specifics regarding sanctions relief or investment agreements remain undisclosed.
Dmitriev, who leads the Russian Direct Investment Fund, has been pivotal in facilitating economic and diplomatic interactions between Moscow and the Trump administration. This renewed engagement comes amid U.S. sanctions imposed after Russia’s invasion of Ukraine, which continue to hinder significant areas of bilateral trade and investment.
During the St. Petersburg meeting, President Putin addressed the topic of Russian diesel shipments to the U.S., offering to supply American farmers with fertilizer as well. Preparations for diesel deliveries are underway, with an initial shipment of approximately 40,000 metric tons contingent on finalizing financial arrangements. Witkoff welcomed these potential fuel supplies, noting their potential benefits for American consumers and their capacity to alleviate cost pressures on farmers and transport operators. Putin stated that the announcement of additional supplies has already contributed to a decrease in global diesel prices.
While the proposed trade arrangements suggest a possibility of limited economic engagement, no comprehensive agreement has been reached to restore normal trade relations. The impact of these discussions on existing sanctions remains uncertain.
Despite the economic focus, Witkoff emphasized that resolving the Ukraine conflict remains a top priority. He proposed the resumption of trilateral negotiations involving the United States, Russia, and Ukraine, aimed at identifying practical steps toward achieving a peace settlement. These discussions underscore that both economic and diplomatic issues are being explored by Washington and Moscow, although significant challenges persist in resolving the conflict and defining the future of bilateral relations.