Putin’s Economic Envoy Helped Break The Russian-US Impasse On Ukraine

Andrew Korybko 

Creative economic diplomacy was the key to getting their increasingly stalled talks back on track

Russian Special Presidential Envoy Kirill Dmitriev, who’s also the CEO of the Russian Direct Investment Fund, paid a visit to DC last week to continue negotiations with the US over bilateral ties and Ukraine. His trip was successful, with Dmitriev claiming afterwards that “we made three steps forward on a large number of issues” and praising Trump’s team for their sincere interest in understanding Russia’s position. This came several days after Trump signaled his growing impatience for a deal as was analyzed here.

Dmitriev has been described by RT as Russia’s “chief economic envoy in recent Russian-US talks”, which takes on an even greater significance given the aforementioned context and Trump’s preference for transactional diplomacy. He’s also very American-friendly, having been educated at both Stanford and Harvard, so he’s someone who US officials can get along with and feel comfortable speaking to. These factors combine to elevate the importance of creative economic diplomacy in the Russian-US talks.

While progress had reportedly been made on repairing bilateral ties prior to Dmitriev’s trip, the Ukrainian aspect of their negotiations had arguably reached an impasse over Putin’s refusal to make major compromises on issues that he considers integral to Russia’s national security. This explains Trump’s self-admitted anger with Putin, but Dmitriev’s proposals for privileged US investments in Russia’s resource sector and equally privileged access to its enormous market helped alleviate that.

He was the right man talking about the right things at the right time, which accounts for Trump proclaiming after Dmitriev’s talks with top officials that “I think that President Putin is ready to make a deal”, thus reversing what he himself implied less than a week prior about losing patience with Putin. His volte-face thus suggests that he was pleased with whatever trade, investment, and resource proposals Dmitriev offered the US. It also contrasts with the US’ difficulty in clinching a resource deal with Ukraine.

How all of this relates to breaking the previously mentioned impasse on Ukraine is that the US might now be more flexible with its envisaged end game upon learning that Russia plans to reward it with privileged trade, investment, and resource deals for coercing Ukraine into compromises that align with Russia’s national security interests that Putin insists must be part of any final deal. These carrots that Dmitriev dangled could therefore be enticing enough that Trump revises his peace plan to cater to Putin.

To be clear, Putin isn’t trying to “buy off” Trump, but to lay a solid economic basis upon which the nascent Russian-US “New Détente” could become a strategic partnership after the Ukrainian Conflict ends. Resource cooperation, especially on extracting fossil fuels from the Arctic and rare earth minerals from Donbass, is assessed by Russian policymakers as the speediest means to this end when coupled with privileged US access to their country’s enormous market. It also appeals to Trump and his team too.

While it’s premature to declare that the peace process has now been placed on the trajectory of an inevitable deal, the odds of one being agreed to are much greater than before Dmitriev’s trip, but Trump’s capriciousness might see him suddenly sour on Russia yet again. Nevertheless, Dmitriev’s timely intervention saw him employ creative economic diplomacy to get their increasingly stalled talks back on track, so now it’s up to Trump to close the deal by coercing Ukraine into Russia’s requested concessions. 

Andrew Korybko, Substack, April 4, 2025

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