US President Donald Trump has announced a deal to bring Russian diesel into the US market as he faces growing pressure to curb fuel prices ahead of next month’s midterm elections.
Trump said Russian President Vladimir Putin had agreed to release 300,000 tonnes of diesel immediately “to the American and global marketplace”, followed by 500,000 tonnes in November and another one million tonnes afterwards, reports BBC.
Ukraine’s President Volodymyr Zelensky condemned the move on Friday, calling it a gift to Putin and “an investment in a war that must be ended, not prolonged”.
Under the reported agreement, the US Treasury is suspending sanctions on Russian diesel exports until 7 April, although other Russian assets, including those held in American banks, remain frozen.
In a post on Truth Social, Trump also said Russia would deliver another three million tonnes of diesel “within a short period”. The additional supply would depend on the condition of Russian refineries, which have come under Ukrainian attack.
Putin later said Russia was prepared to supply oil and petroleum products to the US and global markets. However, his statement did not specify the quantities involved.
Russia introduced a ban on diesel exports earlier this year.
Analysts have questioned whether Russia can supply the volumes Trump announced and whether the deal would significantly reduce fuel prices for American consumers.
Tim Armitage, an investment strategist at Quilter Cheviot, said the quantities Trump mentioned were “relatively small”.
He estimated that the initial 300,000-tonne shipment would amount to approximately 2.25 million barrels, compared with US daily consumption of around 3.8 million barrels.
“So it won’t make a material difference to pump prices in the US,” he said.
“Granted, there are then two more releases to come, but it does appear to be a slightly desperate move by President Trump to try to lower inflation ahead of the midterms.”
The BBC has asked the White House what Russia would receive from the US in return for the commitment.
Ukraine condemns agreement
Zelensky warned that the agreement would not help bring the war to an end, arguing that Russia would use the arrangement to continue its aggression against Ukraine.
“Gifts to Putin will not work for peace,” he said, adding that Russia would repay the diesel arrangement with “further terror”.
“We count on America’s fair support for our defence of life, for our defence of people in Ukraine – and on the United States having a correspondingly strong conversation with Russia. A strong one, not a weak one,” he wrote.
Zelensky defended Ukraine’s attacks on Russian oil refineries, saying they responded to “Russia’s years-long campaign of terror against Ukraine’s energy sector”.
“Ukraine will not set Russian oil refineries on fire if Russia does not destroy our energy infrastructure,” he said.
Russia has experienced two waves of severe fuel shortages this year following Ukrainian drone strikes on its oil refineries. The International Energy Agency estimates that Russian diesel production has fallen by nearly 30%.
Trump has expressed displeasure over the attacks, blaming them for rising fuel prices.
UK reiterates support for Ukraine
The UK government reaffirmed its support for Ukraine following Trump’s announcement, saying its position on the conflict remained unchanged.
“The UK’s position could not be clearer. We will continue working closely with international partners to ensure Ukraine has the military and financial support it needs to defend itself,” a government spokesperson said.
The spokesperson added that Britain would continue to “maintain pressure on Russia through the toughest sanctions regime ever imposed by UK”.
“Russia could end this war today. We remain committed to supporting Ukraine for as long as it takes and to working with partners to bring about a durable peace.”
The UK government also said it would continue working with international partners to support Ukraine and secure lasting peace.
“We will also maintain pressure on Russia through the toughest sanctions regime ever imposed by the UK, increasing the cost of Putin’s aggression and supporting efforts to secure a just and lasting peace.”
Meanwhile, Putin’s envoy Kirill Dmitriev welcomed the agreement in a social media post.
“Russia-US co-operation on diesel and energy will benefit the world,” he said.
Fuel prices and political pressure
Friday’s announcement marks Trump’s latest attempt to bring down US fuel prices as he grapples with the economic and political consequences of the war with Iran, which began in February.
The conflict has driven up petrol and, particularly, diesel prices in the US in recent months. Higher fuel costs have also contributed to broader inflation, adding to public discontent over the cost of living.
According to the American Automobile Association (AAA), the average price of diesel in the US currently stands at $6.28 (£4.74) a gallon, down from a record $6.53 at the end of September.
Shortly after Trump’s announcement, the US Treasury formally issued a temporary licence allowing Russian diesel to enter the market.
Putin said he had discussed the global energy situation with Trump during their telephone conversation on Friday.
“The Russian side confirmed its willingness to supply oil and petroleum products to the US market and global markets at large,” he said in a statement.
The Kremlin had earlier said Trump welcomed Russia’s involvement in efforts to resolve the Iran conflict. The two presidents spoke by telephone on Friday.
The details of the diesel arrangement, including how Russia would deliver the fuel and what it would receive in return, remain unclear. Trump’s Truth Social posts have often provided incomplete information, leaving key aspects of the agreement unanswered.
The deal also marks a notable shift in US policy, as Congress recently passed legislation, signed by Trump, authorising new American sanctions and tariffs against countries importing Russian oil and gas.
The agreement could draw criticism from European allies and pro-Ukraine politicians in the US, who may argue that the arrangement would help finance Moscow’s war against Ukraine.
The impact on fuel prices also remains uncertain. Brent crude, the global benchmark, is trading above $103 a barrel, compared with around $73 before the war with Iran.
With the US midterm congressional elections approaching, which will determine whether Republicans retain control of Congress, Trump has been seeking ways to ease the political pressure on his party over rising energy costs.
Earlier this week, he said he was “thinking about” suspending the federal tax on petrol. He also announced plans to allow so-called red-dyed diesel to be used on US highways without incurring federal tax.
Trump has also pressured G7 nations to release 100 million barrels of oil and diesel from their stockpiles to ease supply concerns. He had previously supported calls for a ban on US diesel exports.
