After pressuring countries, particularly India, to curb purchases of Russian oil through sanctions and tariff threats, US President Donald Trump is now announcing a deal to bring Russian diesel back to global markets as fuel prices soar.
In September, India, which has relied heavily on discounted Russian crude since the invasion of Ukraine, faced the prospect of US tariffs of up to 100% on countries buying Russian oil and gas, raising fresh questions about Washington’s approach to energy security, trade and its pressure on New Delhi.
Trump says Russian President Vladimir Putin has agreed to release millions of tonnes of diesel fuel to global markets, as Washington temporarily eases sanctions on Russian fuel in an effort to bring down soaring energy prices.
In a post on Truth Social, Trump said Russia would immediately supply more than 300,000 tonnes of diesel, followed by another 500,000 tonnes in November and a further one million tonnes thereafter.
He added that Russia would deliver another three million tonnes within a short period, depending on the condition of its diesel refineries.
“Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!”
The US Treasury Department subsequently issued a temporary general licence allowing the sale, delivery, offloading and importation of Russian-origin diesel, including into the United States, until 7 April 2027.
Trump said the move, alongside what he described as US control of the Strait of Hormuz, would help reduce fuel costs for American consumers, particularly farmers, ranchers and truck drivers.
The announcement drew criticism from Ukrainian President Volodymyr Zelensky, who argued that easing restrictions on Russian energy exports would help finance Moscow’s war against Ukraine.
“Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged,” Zelensky wrote on social media.
He also described the move as an obvious weakness, warning that the revenue would allow Russia to continue its military campaign and inflict further damage.
Zelensky defended Ukrainian attacks on Russian oil refineries, saying they were a response to Russia’s sustained strikes against Ukraine’s energy infrastructure.
“Ukraine will not set Russian oil refineries on fire if Russia does not destroy our energy infrastructure.”
A representative of Putin welcomed the agreement. Russian President Putin separately said he had informed Trump of Moscow’s readiness to supply oil and petroleum products to the United States and global markets, although he did not provide details of the quantities or delivery schedule.
The agreement comes as the Iran war, which began in February, has driven up global energy prices and increased pressure on the US administration to ease fuel costs.
According to the American Automobile Association (AAA), the average US diesel price stood at US$6.28 a gallon, below a record high of US$6.53 recorded at the end of September.
Russia has also experienced fuel shortages following Ukrainian drone attacks on its oil refineries. The International Energy Agency has estimated that Russian diesel production has fallen by nearly 30 per cent.
The US sanctions waiver marks a shift in policy towards Russian energy exports, following years of restrictions imposed after Russia’s invasion of Ukraine.
The arrangement has also raised questions about how the proposed fuel supplies will be delivered, what Russia will receive in return and whether the additional supply will significantly reduce global prices.
Following Trump’s announcement, diesel futures fell by about four per cent, although prices remained substantially higher than at the start of the year. Brent crude oil continued trading above US$100 a barrel.
The longer-term impact of the agreement on fuel prices remains uncertain, particularly while geopolitical tensions continue to disrupt energy markets.
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