Kremlin Eyes Sanctions Relief as GOP Hawk Rejects Trump Agenda
WHO:
The Independent - Russian citizens Denis Bystrov, 39, Nelly Godunova, 92, and Sergei Sukachev, who said he was “almost 70,” commented on taxes and war spending.
The Independent - Chris Weafer, CEO of Macro-Advisory Ltd., said Russia had financing to cover its deficit in 2027 and probably 2028, at the cost of higher taxes and expenses for households and businesses.
The Independent - Finance Minister Anton Siluanov said Russia’s revised deficit for the year would be around 3% of GDP.
CNN - Russian President Vladimir Putin’s foreign policy aide Yuri Ushakov said the United States and Russia had been discussing possible sanctions relief for the Russian Direct Investment Fund (RDIF).
CNN - RDIF CEO and presidential envoy Kirill Dmitriev was actively engaging American officials about lifting the sanctions.
CNN - President Trump said he did not want to drive Russia away from negotiations. He wrote: “I am in the process of negotiating Peace in the war between Russia and Ukraine, and don’t want to do anything that will drive, foolishly, Russia away from the bargaining table.”
Alternet - Rep. Don Bacon, a retiring Nebraska Republican, criticized Trump’s approach to Russia and questioned why lawmakers should fund his agenda: “He can’t even see Russia as our adversary … Why do I want to fund his agenda?”
Alternet - Sen. Mitch McConnell (R-Ky.), who chairs the Senate panel overseeing Pentagon funding, argued that passing Trump’s priorities requires cooperation with Republicans who distinguish between allies and adversaries.
Alternet - Rep. Adam Smith (Wash.), the senior Democrat on the House Armed Services Committee, called for “a more measured approach with modest appropriations.”
CNN - Ukrainian President Volodymyr Zelensky has advocated tougher sanctions on Russian energy exports and told NBC’s “Meet the Press” that sanctions waivers strengthened Putin’s war effort.
WHAT:
The Independent - Russia forecasts growth of 0.6% of GDP; its unemployment rate is at a record low, and the government carries very little debt.
The Independent - Russian banks resumed bond purchases after the government offered better terms; banks have also financed defense companies, shifting war costs onto bank and state-company balance sheets, according to the Kyiv School of Economics.
The Independent - The article says Russia cannot access international bond markets because sanctions bar banks and investors from dealing with it.
The Independent - Metro Russia said its contribution to the “National Front - Everything for Victory” fund would buy vehicles, communications devices, and anti-drone equipment for soldiers.
The Independent - Metro AG said it had no role in the contribution and that it “does not reflect our position or the way we run our business.”
The Independent - Russia’s budget deficit reached 5.8 trillion rubles ($72 billion) through August, nearly 50% above the prior year’s figure and exceeding the revised 4.8-trillion-ruble target, according to the Kyiv School of Economics.
The Independent - Russia proposed a 20%-30% windfall-profits tax on mining companies and higher tax rates of 13%-22% on interest income, dividends, and proceeds from property sales.
The Independent - Proposed new levies include a 100-ruble charge per parcel and 22% VAT on formerly tax-free online purchases of foreign goods worth less than 200 euros, plus a 35% tax on dividends paid into restricted accounts for investors from “unfriendly countries.”
The Independent - A German retailer Metro AG’s Russian subsidiary was seized under a law permitting temporary administration of firms from “unfriendly countries” and made a one-billion-ruble ($12 million) contribution to a war-support fund.
The Independent - The National Wealth Fund’s liquid assets available for spending had dwindled to 1.7% of GDP.
The Independent - The government’s proposed 2027–2029 state budget was due to be taken up by parliament Thursday.
CNN - The Trump administration and Kremlin were discussing whether to lift US sanctions on the state-owned RDIF, a multibillion-dollar Russian sovereign wealth fund. Ushakov said the talks had been underway “for some time” and added, “What the outcome will be, I do not know.”
CNN - The Biden administration sanctioned RDIF after Russia’s invasion of Ukraine, describing it as a “known slush fund” for Putin and his inner circle.
CNN - Trump defended concessions to Russia and said some sanctions were waived to keep Moscow negotiating. He also announced a deal suspending fuel-export sanctions for six months to allow Russian diesel sales at market prices.
CNN - CNN reported that a proposed measure would have imposed tariffs of up to 100% on goods imported from the five largest buyers of Russian crude oil or gas.
Alternet - Trump wants to add $350 billion to the $1.15 trillion defense base budget; the article said the increase would require near-universal Republican support. An unnamed senator said the bill would include “guardrails,” without specifying them.
Alternet - Bacon opposed funding a supplemental, reconciliation bill, and Trump’s proposed ballroom funding, citing the administration’s stance toward Russia. McConnell’s Wall Street Journal opinion piece said ending Trump’s “obeisance” to Putin could be a prerequisite for year-end legislation.
ABC News Business - The article excerpt says the war is straining Russia’s state finances and that Putin is seeking revenue by increasing tax extraction from an economy increasingly oriented toward military activity.
WHERE:
CNN - The sanctions discussions concern US measures against Russia; the conflict is in Ukraine.
Alternet - The proposed defense funding is for the US Department of Defense.
WHEN:
CNN - The article says sanctions discussions had been underway “for some time.” It also describes the proposed diesel-sanctions suspension as lasting six months.
Alternet - The article says officials would return to Washington after the midterms to consider Defense Department funding.
WHY:
The Independent - Chris Weafer said Russia’s budget is increasingly directed toward military spending, leaving less for ordinary economic development and infrastructure.
The Independent - The Kyiv School of Economics said a fall in global energy prices or declining confidence in Russia’s financial system could destabilize its finances.
The Independent - The article attributed Russia’s fiscal strain to military spending, slow economic growth, sanctions, high interest rates for non-military businesses, labor shortages, and Ukrainian strikes on oil refineries and export terminals.
CNN - Trump said sanctions waivers were intended to keep Russia at the negotiating table. The White House was seeking to ease US oil and diesel price pressures.
Alternet - Republican critics objected to Trump’s Russia policy while considering defense funding; GOP hawks also support military spending to modernize the US military and compete with China and Russia.
HOW:
The Independent - The government has used bank bond purchases and loans to defense companies to finance spending; the Kyiv School of Economics said this shifts some war costs away from the federal budget.
Alternet - Trump wants to use the reconciliation process, which cannot be filibustered, to pass the defense funding bill.
CNN - Ushakov said Dmitriev was engaging American officials on lifting sanctions; CNN said it contacted the White House and US Department of State for comment.
(UPDATED October 30, 2026 00:01 UTC)
Russia’s budget deficit has surged beyond its revised target as military spending, sanctions and sluggish growth strain state finances, prompting the government to propose higher taxes and new fees. At the same time, US and Russian officials are discussing possible sanctions relief for the Russian Direct Investment Fund, while President Trump says he wants to keep Moscow at the negotiating table and has defended easing some restrictions on Russian fuel sales. Trump is also seeking a major increase in US defense spending, but Republican critics have questioned funding his priorities over his approach to Russia, while Ukrainian President Volodymyr Zelensky argues that sanctions waivers help sustain Russia’s war effort.
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(UPDATED October 29, 2026 13:04 UTC)
The Trump administration and the Kremlin have been discussing whether to lift U.S. sanctions on Russia’s sovereign wealth fund, with Russian officials saying envoy Kirill Dmitriev is in talks with American counterparts; President Trump says he wants to keep Moscow at the negotiating table. Russia’s budget deficit has surged beyond its target as the war strains public finances, and the government has proposed higher taxes and new fees to raise revenue. Trump is also seeking a major increase in U.S. defense spending, but Republican lawmakers have criticized his approach to Russia as they weigh whether to support his funding plans.
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(UPDATED October 29, 2026 09:00 UTC)
The Trump administration and the Kremlin have been discussing lifting US sanctions on Russia’s state-owned sovereign wealth fund, with Russian officials saying envoy Kirill Dmitriev is engaging American counterparts. President Trump says sanctions relief is meant to keep Moscow negotiating, and his administration has also suspended fuel-export sanctions for six months to allow Russian diesel sales, while Ukrainian President Volodymyr Zelensky argues that easing sanctions helps Russia’s war effort. Trump’s proposed increase to the US defense budget is drawing resistance from Republican lawmakers who criticize his approach to Russia, while Senate Republican leader Mitch McConnell says cooperation with lawmakers who distinguish between allies and adversaries will be needed to pass the president’s priorities.