US President Donald Trump announced a new agreement with Russian President Vladimir Putin designed to lower domestic and global fuel costs by allowing Moscow to release significant quantities of diesel. Trump stated the initiative would lead to prices dropping in record numbers and rapidly. Under the terms of the arrangement, the US Treasury has suspended sanctions on Russian diesel exports until April 7, 2027, though other assets currently held in American banks remain frozen.
The initial delivery will consist of 300,000 tonnes, followed by a second tranche of 500,000 tonnes in November and a subsequent shipment of one million tonnes. Trump noted that an additional three million tonnes could follow, contingent upon the operational status of Russian refineries. Putin confirmed his willingness to supply oil and petroleum products to both the US and the global market, with his envoy, Kirill Dmitriev, describing the cooperation as a benefit to the world.
The policy shift arrives as the Trump administration struggles to manage the economic fallout from the war in Iran, which began in February and disrupted global energy supplies. The conflict caused American diesel prices to climb, hitting a record $6.53 a gallon in late September. Current average prices stand at $6.28 a gallon, a figure the administration is eager to reduce to curb widespread inflation. In particular diesel, skyrocketing in America in recent months, which has soured his standing with the public who have been stung by the higher pump prices and knock-on effects that led to across-the board inflation, that conflict has sent the cost of petrol and. According to the AAA, down from the record high of $6.53 recorded at the end of September, the average diesel price in the US is currently $6.28 (£4.74) a gallon.
Ukraine’s president, Volodymyr Zelensky, fiercely criticized the agreement, framing it as a strategic error. He argued that allowing Russia to export petroleum serves as an investment in the ongoing conflict, describing the move as a gift that will not secure peace. Zelensky cautioned that Russia would likely reciprocate the economic relief with further acts of terror, emphasizing that the war should be finished rather than prolonged. Saying any easing of sanctions on Russia played into Moscow’s hands and would prolong the war between the two countries, ukraine’s president criticised the decision.
Russia has recently grappled with domestic fuel shortages, with the International Energy Agency estimating that its diesel production has plummeted by nearly 30 percent this year. These deficits were largely triggered by Ukrainian drone strikes on Russian refineries. While Trump has previously voiced frustration over these strikes, blaming them for inflated fuel costs, Zelensky maintained his defensive stance on Friday.
Zelensky stated that the drone operations are a necessary response to years of Russian attacks against Ukraine’s own energy infrastructure. He clarified that Ukraine would cease targeting Russian refineries if Moscow stopped destroying Ukrainian power facilities. While the US Treasury has already issued a temporary license to facilitate these imports, the White House has yet to provide specific details regarding what concessions, if any, the United States provided in exchange for the diesel commitment.
