President Trump announced on Friday that he reached an agreement with Russian President Vladimir V. Putin to immediately import Russian diesel fuel to the U.S. market, undercutting U.S. sanctions. The Kremlin confirmed Mr. Putin expressed willingness to supply more oil and fuels in a phone call with Mr. Trump, though few details were provided.
Minutes after the announcement, the Treasury Department said it was lifting sanctions on Russian diesel exports to allow supply to the global market. Russian energy producers received a general license to sell diesel until April. The U.S. had imposed sanctions on Russian energy exports following the 2022 invasion of Ukraine to limit Mr. Putin's ability to finance the war.
Russia, a key global diesel supplier, recently extended its export ban until end of October due to Ukrainian strikes on refineries and fuel infrastructure. These attacks and the ban have kept fuel prices high ahead of U.S. midterm elections. Mr. Trump claimed Russia would supply over 300,000 tons immediately, 500,000 tons in November, and 1,000,000 tons monthly thereafter, with potential for 3,000,000 tons total.
Critics questioned the deal. President Volodymyr Zelensky called it fueling Putin's war effort. Analysts noted the volumes would be small relative to global demand of 30 million barrels daily. Diesel averaged $6.28 per gallon in the U.S. on Friday, up from $3.68 a year ago.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing