President Donald Trump announced a deal to import Russian diesel into the United States, as he faces pressure to reduce fuel prices. Trump stated that Russian President Vladimir Putin agreed to release 300,000 tonnes of diesel immediately, followed by 500,000 tonnes in November and an additional million thereafter. This announcement was made on Friday and has drawn criticism from Ukrainian President Volodymyr Zelensky, who described it as a gift to Putin and an investment in a war that should be ended.
The U.S. Treasury is reportedly suspending sanctions on Russian diesel exports until April 7 as part of this agreement, although other assets, such as those in American banks, remain frozen. In a post on Truth Social, Trump mentioned that an additional three million tonnes of Russian diesel would be delivered soon, depending on the condition of Russian refineries, which have been targeted by Ukraine.
Putin indicated that Russia, which had previously imposed a ban on diesel exports, is willing to supply both the U.S. and global markets with oil and petroleum products, though he did not specify the amounts. Analysts have raised doubts about Russia's capacity to deliver the stated quantities of diesel and the potential impact on prices for American consumers.
Tim Armitage, an investment strategist at Quilter Cheviot, remarked that the quantities mentioned by Trump are relatively small compared to U.S. consumption, suggesting that it would not significantly affect pump prices. The average diesel price in the U.S. is currently $6.28 per gallon, down from a record high of $6.53 at the end of September.
Following Trump's announcement, the U.S. Treasury issued a temporary license allowing Russian diesel into the market. Putin confirmed that he had discussed the global energy situation with Trump and reiterated Russia's willingness to supply oil and petroleum products.
Zelensky criticized the deal, stating that gifts to Putin would not contribute to peace and that Russia would respond with further aggression. He emphasized the need for strong support from the U.S. for Ukraine's defense.
A spokesperson for the UK government reiterated its commitment to supporting Ukraine and maintaining pressure on Russia through sanctions. The UK has emphasized its position on continuing to work with international partners to ensure Ukraine's military and financial support.
The deal comes amid rising fuel prices in the U.S., which have been influenced by the ongoing conflict in Iran and its impact on global energy prices. Trump has been exploring various strategies to lower fuel costs as the midterm elections approach, including the possibility of suspending the federal gasoline tax.
The deal with Russia raises questions about the implications for U.S. foreign policy and the potential backlash from European allies and pro-Ukraine politicians. The global benchmark for crude oil, Brent, remains above $103 a barrel, significantly higher than pre-war levels.