Putin Fuel Pivot: Trump Strikes Deal To Flood Global Markets With Russian Diesel

The deal involves Washington relaxing some wartime sanctions on Moscow, as the White House tries to bring down fuel costs before the midterm elections.

Advertisement
Read Time: 3 mins
The announcement coincided with fresh US-Ukraine talks in Miami aimed at breaking the deadlock in the war.
NDTV
Quick Read
Summary is AI-generated, newsroom-reviewed
  • Russia agreed to supply large volumes of diesel to US and global markets under eased sanctions
  • The US Treasury issued a temporary license allowing Russian diesel sales until April 2027
  • Trump aims to lower fuel costs before midterm elections amid rising US gasoline and diesel prices
Did our AI summary help?
Let us know.

US President Donald Trump said on Friday that Russia has agreed to release large volumes of diesel into American and global markets.

The deal involves Washington relaxing some wartime sanctions on Moscow, as the White House tries to bring down fuel costs before the midterm elections.

Advertisement

Announcing the arrangement on social media after speaking to Russian President Vladimir Putin, Trump said Moscow would deliver more than 300,000 tons of diesel immediately.

Supplies would rise to 500,000 tons in November and then to one million tons, with still larger volumes promised later.

The Kremlin said Russia had reaffirmed its readiness to supply oil and petroleum products to the US and world markets.

To make the flows possible, the US Treasury issued a temporary licence on Friday allowing Russian diesel to reach international buyers until April 2027.

Advertisement

Ukrainian President Volodymyr Zelensky condemned the decision, calling it dishonest, unworthy of Kyiv's allies and a sign of weakness. Russia has faced successive rounds of US and allied sanctions since it invaded Ukraine in 2022.

ALSO READ | Russia Strikes Ukraine With Ballistic Missiles Across Residential, Industrial Sites; Eight Killed

The political pressure on Trump is evident. His Republican Party risks losing control of Congress in the coming elections, with voters angry over the rising cost of living.

Advertisement

Regular gasoline in the US has risen more than 46% since late February to $4.37 a gallon, while diesel has jumped 67% to $6.28. Trump described cheaper fuel for farmers, ranchers and truckers as his top priority.

The price surge began when US-Israeli strikes on Iran prompted Tehran to block the Strait of Hormuz, a vital route for global energy shipments.

Trump has pointed to Ukrainian attacks on Russian refineries as a cause of higher prices, though the conflict with Iran reportedly has been the main disruption to supply.

The announcement coincided with fresh US-Ukraine talks in Miami aimed at breaking the deadlock in the war.

ALSO READ | Trump Backs Plan To Ease Russia Sanctions In Exchange For Political Prisoners: Report

US envoy Steve Witkoff said the sides discussed ways to de-escalate and end the fighting before winter. The talks covered security guarantees, longer-term arrangements for Ukraine and Europe, and post-war reconstruction.

Advertisement

Officials from Britain, France and Germany attended, along with representatives of NATO and the European Union. Witkoff and Jared Kushner, the US president's son-in-law, visited Moscow and Kyiv last month.

Diplomacy has so far produced little. Russia continues to demand all of the eastern Donbas region, including areas Kyiv still holds. Zelensky has refused to cede territory, warning that Moscow could use it to launch another offensive. Russia now controls roughly one-fifth of Ukraine.

The urgency has grown as winter nears and strikes on civilian targets continue. On Thursday, a Russian attack on buses in the frontline city of Kramatorsk killed 30 people.

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.


Loading...