Trump announces deal with Putin to import Russian diesel fuel

President Donald Trump announced an agreement with Russian President Vladimir Putin on Friday to release hundreds of thousands of tons of diesel into the global market to lower fuel prices.

According to President Trump, Russia has agreed to immediately supply 300,000 tonnes of diesel. This initial release will be followed by 500,000 tonnes in November and another million after that, as reported by BBC News. The U.S. Treasury Department confirmed it is issuing a temporary license authorizing the importation of Russian diesel through April 7, 2027.

The move comes as the average U.S. diesel price sits at $6.28 a gallon. NBC News reported that prices have spiked nearly 70% since the start of the Iran war in February, reaching a record high of $6.53 in late September. Trump stated on Truth Social that the deal would cause prices to come down in record numbers and fast.

While Russian officials welcomed the cooperation, Ukrainian President Volodymyr Zelenskyy criticized the easing of sanctions. Zelenskyy argued that allowing Russia to sell petroleum products serves as an investment in war. He defended recent Ukrainian drone strikes on Russian refineries, which Trump had blamed for driving up costs, as a response to Russian attacks on Ukraine's energy sector.

Russian Deputy Prime Minister Alexander Novak told TASS that the country would begin lifting its diesel export ban immediately. NBC News noted that the Kremlin had imposed this ban in July. Despite the deal, BBC News noted that International Energy Agency data shows Russian diesel production has fallen by nearly 30% this year due to drone attacks.

Background

The agreement follows a period of skyrocketing energy costs linked to the Iran war that began in February and recent escalations in the Russia-Ukraine conflict. Russia had previously extended a diesel export ban through the end of October before this deal was announced.