Witkoff Reveals US Treasury Working With Putin’s Envoy on Economic Ties

US President Donald Trump’s special envoy Steve Witkoff publicly confirmed Wednesday, Oct. 21, that Washington and Moscow are discussing future trade and economic cooperation alongside negotiations to end Russia’s war against Ukraine, revealing that the US Treasury Department is working directly with Kremlin economic envoy Kirill Dmitriev.

The disclosure came during Witkoff’s meeting with Russian President Vladimir Putin in St. Petersburg, where discussions extended well beyond peace proposals to include Russian diesel shipments to the US, financial arrangements and potential fertilizer exports.

“Our Treasury Department is working with you now independently,” Witkoff told Dmitriev during the meeting.

He said the contacts were helping both governments assess possibilities for renewed economic relations, which Washington was also discussing with Ukrainian officials.

The remarks provide explicit confirmation that the Trump administration has been pursuing economic engagement with Moscow, even as the US maintains extensive sanctions imposed over Russia’s invasion of Ukraine.

They are particularly significant because Washington largely suspended official bilateral trade and investment engagement with Moscow following Russia’s full-scale invasion in February 2022, although limited commercial trade continued.

Witkoff reveals direct Treasury talks with Putin’s economic envoy

Dmitriev, the chief executive of the Russian Direct Investment Fund (RDIF) and Putin’s special representative for international economic cooperation, has played a central role in Moscow’s contacts with the Trump administration.

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Addressing Dmitriev directly, Witkoff praised his contribution to discussions between the two governments.

“You’ve been outstanding, Kirill,” he said.

Witkoff described the economic discussions as an indication of the opportunities that might become available if relations between Washington and Moscow improve.

He also revealed that the US was speaking openly with Ukraine about potential economic developments following the war.

“We even talk about it now openly with the Ukrainians to give them some sort of sense about what the possibilities will be when this whole conflict is ended,” Witkoff said.

His comments did not establish whether the Treasury Department’s contacts concerned sanctions relief, investment, banking arrangements or specific commercial agreements.

Nor did he identify the Treasury officials involved or explain what commitments, if any, Washington had made.

The contacts are notable because the US Treasury Department sanctioned Dmitriev and RDIF in February 2022, identifying the fund as part of the financial network supporting Putin’s government.

Treasury also administers and enforces major US financial sanctions on Russia through its Office of Foreign Assets Control.

Witkoff’s comments therefore raise questions about how discussions with Dmitriev fit into Washington’s broader sanctions policy and whether the administration is exploring ways to restore economic relations with Moscow.

US and Russia have had limited trade since 2022

The acknowledgment represents a departure from the sharply restricted economic relationship that followed Russia’s full-scale invasion of Ukraine.

In 2022, Washington imposed sweeping financial and trade restrictions on Moscow, including measures affecting Russian banks, energy imports, technology exports and investment.

The US also withdrew Russia’s normal trade relations status, exposing Russian imports to higher tariffs.

Formal bilateral engagement on trade and investment issues was largely halted, although commerce between the two countries did not end entirely.

According to the US Trade Representative, American goods trade with Russia totaled approximately $4.4 billion in 2025, compared with about $36 billion in 2021.

Against this backdrop, Witkoff’s confirmation that Treasury officials are working with Dmitriev indicates that the administration is considering future economic opportunities beyond the narrow trade that has continued under existing restrictions.

The remarks do not establish that Washington has lifted its broader Russia sanctions or agreed to restore normal trade relations.

Putin confirms Russian diesel shipments, offers fertilizers to US

The economic discussions were not limited to prospective cooperation after the war.

Witkoff thanked Putin for removing Russian diesel export restrictions, saying the decision would benefit American consumers and help ease pressure on global fuel markets.

He said Trump was deeply grateful, particularly because farmers and truck drivers had been affected by higher diesel costs.

Putin responded by claiming that global diesel prices had fallen between 5% and 6% following the announcement of Russian supplies to the US.

He said Moscow was preparing several tankers to begin deliveries, with the first carrying 40,000 metric tons of diesel and scheduled to depart within two or three days.

Additional shipments would follow, Putin said, adding that financial arrangements needed to be finalized to ensure the transactions could proceed.

The Russian leader also offered to supply large quantities of fertilizer to the American market, referring to Trump’s concerns about US farmers.

The discussion revealed that the two governments were addressing not only the political implications of closer economic cooperation but also practical questions about deliveries, payments and trade.

Kremlin foreign policy aide Yuri Ushakov later confirmed through Interfax that the diesel arrangement was discussed during the meeting and that practical implementation had begun following Washington’s decision to ease certain restrictions.

The diesel deal comes amid criticism in Washington that increased Russian energy exports could provide Moscow with additional revenue while its military continues attacking Ukraine.

Despite the emphasis on trade, Witkoff said ending Russia’s war against Ukraine remained a central objective of his visit.

He proposed resuming trilateral negotiations involving Ukraine, Russia and the US, suggesting that technical teams begin examining the next steps toward a settlement.