Trump announces Russian diesel deal as US eases sanctions

President Donald Trump said Friday that Russia would release diesel fuel onto the global market under an agreement with President Vladimir Putin, while the United States temporarily eased sanctions to allow the fuel to be sold. Ukrainian President Volodymyr Zelenskyy condemned the move, saying it would help finance Russia’s war.

Trump said on Truth Social that Putin had agreed during a phone call to release 300,000 tons of diesel immediately, followed by 500,000 tons in November and 1 million tons in December. Trump said Russia would deliver another 3 million tons within a short period, depending on the condition of its refineries, according to CBS News.

“Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!” Trump wrote. The effect on prices remains uncertain.

The Treasury Department said it was issuing a temporary license, at Trump’s direction, to “allow the supply of Russian diesel to the global market.” A Treasury document said the license authorizes the sale, delivery, offloading and importation of Russian diesel, including into the United States, until 12:01 a.m. Eastern daylight time on April 7, 2027, according to NBC News.

Kirill Dmitriev, an envoy for Putin, welcomed the announcement. “Russia-US co-operation on diesel and energy will benefit the world,” he wrote on social media, the BBC reported.

Zelenskyy called the sanctions relief “an obvious weakness.” In a social media post reported by the BBC, he said: “Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged.” He warned that Russia would repay the diesel with “further terror.”

The announcement comes as diesel costs have surged amid the war with Iran. The average U.S. price is $6.28 a gallon, according to AAA, down from a record $6.53 reached in September but up from $3.68 a year ago. Diesel powers trucks, farm equipment and construction machinery, making its price a factor in the cost of many goods.

Diesel futures fell 4% after Trump’s announcement Friday but remained more than 110% above their level at the start of the year, NBC News reported. Brent crude traded around $104 a barrel, down 0.3% on the day. The BBC reported that Brent had traded at about $73 before the war with Iran began in February.

The sanctions waiver follows other administration efforts to curb fuel costs. Earlier this week, Trump authorized the use of red-dyed diesel on U.S. highways; that fuel is exempt from the federal tax applied to regular diesel, according to CBS News. NBC News reported that earlier, 30-day waivers for Russian oil already at sea expired without substantially changing the course of oil and gas prices.

Trump has also urged Zelenskyy to stop striking Russian diesel refineries, saying those attacks drive up prices. Zelenskyy told CBS News he would stop striking Russian oil and gas targets only if Russia agreed to the same terms. NBC News reported that Ukrainian negotiators were departing for the United States for another round of talks aimed at ending the war.