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President Trump announced an agreement with Vladimir Putin for Russia to supply diesel to global markets. The move relaxes pressure on Moscow ahead of U.S. midterm elections, drawing sharp criticism from Ukraine.
U.S. President Donald Trump announced on Friday that he has reached an agreement with Russian President Vladimir Putin for Russia to supply diesel to the global market. The deal marks a significant shift in U.S. policy toward Moscow, occurring just weeks after Trump signed a sweeping sanctions law targeting Russia’s energy economy.
According to a post on Truth Social, Trump stated that Russia will "immediately supply more than 300,000 tons of diesel," followed by an additional 500,000 tons in November and one million tons "immediately thereafter." Trump wrote that Russia would deliver another three million tons "within a short period of time" after that.
Shortly after the announcement, the U.S. Treasury Department issued a temporary license allowing Russian diesel to be supplied to the global market. This license means U.S. sanctions will not apply until April 2027 on deliveries of Russian diesel that have been loaded onto tankers as of Friday. This is the first such license to ease sanctions on diesel for a period lasting longer than the standard 30-day window since the start of the Ukraine war.
The U.S. has not imported Russian oil or gas since 2022, when the Biden administration banned them due to Moscow’s invasion of Ukraine, according to the U.S. Energy Information Administration. The White House did not immediately respond to questions about who is paying for the diesel or when the fuel will become available.
Trump framed the deal as an effort to lower fuel costs for Americans. "Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority," Trump said. He also posted, "Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!"
The announcement comes amid high fuel prices driven by the war in Iran. The national average for a gallon of diesel in the U.S. was US$6.23 on Friday, according to AAA, after hitting a record US$6.52 on Sept. 22. The global benchmark for crude oil, Brent, remains above $103 a barrel, compared to about $73 a barrel before the war with Iran.
The deal casts doubt on the likelihood of the White House imposing sanctions on Russia this month, despite a bipartisan law passed by Congress that directs the administration to target top importers of Russian oil and gas. The law, signed by Trump last month, envisions sanctions on Russian officials, banks, and a shadow fleet of tankers.
Ukrainian President Volodymyr Zelenskyy reacted sharply to the news. In a social media post, he called the deal a "gift to Putin" and said it plays into Russia’s hands. "Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged," Zelenskyy wrote. In a separate interview with Axios, Zelenskyy described the decision as "not fair and not honest."
Kirill Dmitriev, an envoy for Putin, welcomed the deal on social media, stating, "Russia-US co-operation on diesel and energy will benefit the world." A statement from the Kremlin said Putin and Trump dedicated "significant attention to the prospects of resolving the Ukrainian crisis" and discussed "the situation around Iran and various aspects of bilateral relations."
Rep. Don Beyer, the senior House Democrat on the Joint Economic Committee, called the announcement "infuriating." "Giving him expanded tariff powers in hopes he would use them to help Ukraine was a mistake. Now he’s lifting sanctions on Russian fossil fuels," Beyer said in a statement on X.
The agreement represents a notable reversal of years of U.S. pressure on Moscow over its war with Ukraine. By easing sanctions on Russian diesel, the administration is prioritizing immediate fuel price relief ahead of the U.S. midterm elections, a move that has created tension with Western allies and Ukrainian leadership. The deal also highlights the complex interplay between geopolitical conflicts, such as the war in Iran, and global energy markets.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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