Kremlin says sanctions block $12 trillion US deal

08:20

By: Dakir Madiha

Kremlin says sanctions block $12 trillion US deal

Russia said on February 18 that Western sanctions are preventing the restoration of full economic ties with the United States, with the Kremlin confirming interest in a sweeping $12 trillion cooperation proposal reportedly presented to the Trump administration.

Kremlin spokesperson Dmitry Peskov told reporters that sanctions are hindering the proper functioning of trade and economic relations between Russia and the United States. His remarks amount to Moscow’s clearest acknowledgment to date of what Ukrainian President Volodymyr Zelensky earlier described as the “Dmitriev package,” a large scale economic initiative allegedly offered by Russia to Washington.

The proposal is named after Kirill Dmitriev, head of the Russian Direct Investment Fund and a close ally of President Vladimir Putin. It envisions joint ventures in energy, aviation, mining and nuclear power, contingent on sanctions relief linked to the end of the war in Ukraine. Analysts have questioned the scale of the offer, with The Economist estimating that the realistic annual revenue potential would be closer to $340 billion and describing the larger figure as significantly inflated.

Details of the initiative emerged in a Kremlin memo first reported by Bloomberg on February 12. According to officials familiar with the document, Moscow identified seven areas where it believes Russian economic objectives align with US interests in the event of a settlement in Ukraine. Among the most notable requests is the restoration of dollar denominated transactions, marking a shift after years of Russian efforts to reduce reliance on the US currency.

The plan reportedly includes long term contracts to purchase American aircraft to modernize Russia’s commercial aviation fleet, joint projects in liquefied natural gas production and hard to recover oil extraction, and expanded mining ventures focused on lithium, copper, nickel and platinum. Moscow also signaled readiness to compensate US companies for losses incurred following the 2022 withdrawal of Western firms from Russia, offering preferential terms to businesses willing to return.

Western officials who reviewed the memo told Bloomberg that certain elements appeared crafted to widen divisions between the United States and European allies backing Ukraine.

The headline $12 trillion figure has drawn widespread skepticism among economists. Russia’s annual gross domestic product stands at roughly $2.5 trillion, meaning the proposed agreements would exceed four times the country’s total yearly economic output. The Economist noted that the figure is several multiples of Russia’s annual production and therefore appears overstated.

Ukrainian analyst Pavlo Shkurenko told NPR that the proposal seemed unrealistic, characterizing it as an attempt by Moscow to engage US decision makers through economic incentives rather than political negotiations. He suggested the offer was aimed at appealing to a narrow circle of business interests within the US administration.

Zelensky first disclosed the proposal on February 6 in Kyiv, saying Ukrainian intelligence had presented him with what he called the Dmitriev package valued at approximately $12 trillion. He warned that Ukraine would not support any agreements concerning its future reached without its participation.

While the White House has not confirmed the existence of formal talks on such a package, Peskov’s February 18 comments to RBC represent the most direct public confirmation from Moscow of its desire to revive economic cooperation. He said renewed trade, investment and commercial ties could be mutually beneficial.

Reports indicate that Dmitriev and US special envoy Steve Witkoff have met at least nine times since April 2025. The discussions come as the Trump administration has set a June 2026 deadline for ending the war in Ukraine, raising concerns in Europe that Washington could press Kyiv for significant concessions in pursuit of broader economic engagement with Russia.