By late January 1921, Lutovinov had become so discouraged with the policy of other leaders of the All-Russian Central Council of Trade Unions that he asked to resign from the Council. His letter of resignation attributed his decision specifically to his “sharp disagreement” with the Council majority on the trade union question. The other leaders approved Lutovinov's request to be removed from administrative work in trade unions, but they rejected his request to return to factory work. In March 1921, he was sent to Berlin to investigate the financial management of the embassy. From Berlin, he sent a letter supporting the violent suppression of the Kronstadt rebellion.