Donald Trump announced a deal with Vladimir Putin for Russia to release diesel to global markets, aiming to lower fuel prices ahead of November's midterm elections. The US president said Moscow agreed to immediately release 300,000 tonnes, followed by 500,000 tonnes in November and 1mn tonnes thereafter, with an additional 3mn tonnes contingent on refinery conditions. Trump claimed on Truth Social that diesel prices will come down rapidly. The Kremlin confirmed the deal, with Putin expressing confidence it will benefit the global economy.
Ukraine President Volodymyr Zelenskyy criticized the move as a "weak decision" that helps fund Russia's war effort. The deal follows soaring global diesel prices, with US pump prices hitting a record $6.53. The White House has pressured European allies and Ukraine to ease strikes on Russian refineries, though prices remain elevated. Russia's refineries operate at about 60% capacity due to Ukrainian attacks.
Analysts warn the released volumes may be insufficient to halt the global supply crunch. The US Treasury issued a temporary license allowing Russian diesel exports, though it remains unclear how much will reach the US. Allies responded coolly, with the UK vowing to maintain tough sanctions on Russia. A senior Ukrainian official vowed continued drone strikes on Russian energy facilities.
Source: Financial Times Companies · Summarized by HeadlinesBriefing