US President Donald Trump struck a deal with Russian President Vladimir Putin to supply 300,000 metric tonnes of diesel to US and global markets, despite years of pressure on Moscow over its war with Ukraine. The agreement comes as the US Treasury Department issued a general licence allowing the importation of Russian diesel until April 7, 2027.
The deal was announced following a call between Trump and Putin, with Trump stating Russia would supply additional diesel in November and a further million tonnes after that. The US Treasury's decision to lift sanctions on Russian diesel sales until April 7, 2027, has drawn criticism from Kyiv and European officials, who warn of potential financial benefits to Moscow.
Analysts suggest the agreement is unlikely to lead to sustained lower fuel prices, as Russia's diesel exports are typically higher when its refinery fleet is not under attack. The move comes as global fuel prices remain high due to supply chain disruptions from conflicts in the Middle East and Ukraine, with US diesel prices reaching $2.37 a litre.
Ukrainian President Volodymyr Zelenskiy criticized the deal, calling it a 'gift to Putin' that could lead to further conflict. The US Treasury's decision to allow Russian diesel imports until April 7, 2027, has raised concerns among Kyiv and European officials about the potential for Moscow to benefit from the war in Ukraine.