Donald Trump announced a deal to import Russian diesel into the US, with the Treasury suspending sanctions on Russian diesel exports until 7 April. Trump stated Putin agreed to release 300,000 tonnes immediately, 500,000 tonnes in November, and another million tonnes after that, with a further three million tonnes to follow depending on refinery conditions.
Ukraine's President Volodymyr Zelensky condemned the agreement as a gift to Putin that amounted to "an investment in a war that must be ended, not prolonged". He pointed to overnight Russian strikes on Zaporizhzhia and Kyiv as Russia expressing "its thanks" for the deal.
The EU's foreign affairs chief Kaja Kallas said suspending sanctions "provides Moscow with more revenues to wage war". She announced European foreign ministers intended to approve the largest set of sanctions on Russia since its full-scale invasion on Monday. A UK government spokesperson said Britain would maintain "the toughest sanctions regime ever imposed by the UK" and continue supporting Ukraine.
However, analysts questioned the deal's practical impact. Tim Armitage, investment strategist at Quilter Cheviot, said Trump's initial tranche of 300,000 tonnes equated to approximately 2.25 million barrels, while daily US consumption ran around 3.8 million barrels. "It won't make a material difference to pump prices in the US," he said. He characterised the move as "a slightly desperate move by President Trump to try to lower inflation ahead of the midterms."
The announcement marks a sharp reversal. Congress recently enacted legislation, which Trump signed, to authorise new American sanctions and tariffs on nations importing Russian oil and gas.
Russia's diesel production has fallen nearly 30 percent this year due to Ukrainian drone strikes on refineries, creating severe fuel shortages across the country. Trump has blamed these attacks for rising fuel prices. Zelensky defended the strikes as response to Russia's "years-long campaign of terror against Ukraine's energy sector".
Putin said Russia was willing to supply the US and global markets with oil and petroleum products but did not specify amounts. Putin envoy Kirill Dmitriev welcomed the deal, saying "Russia-US co-operation on diesel and energy will benefit the world".
The average US diesel price currently stands at $6.28 per gallon according to AAA, down from a record $6.53 in late September.