Donald Trump announced a deal to import Russian diesel into the United States, prompting Ukraine's President Volodymr Zelensky to condemn the agreement as "a gift to Putin" and "an investment in a war that must be ended, not prolonged."
Trump said Putin agreed to release 300,000 tonnes of diesel immediately to American and global markets, followed by 500,000 tonnes in November and one million tonnes after that. Trump added that three million more tonnes would arrive within a short period, dependent on the condition of Russian refineries damaged by Ukrainian strikes. The US Treasury issued a temporary license suspending sanctions on Russian diesel exports until April 7, though other Russian assets in American banks remain frozen.
Putin said Russia, which introduced a diesel export ban earlier this year, was willing to supply both US and global markets with oil and petroleum products, but did not specify amounts. An envoy for Putin, Kirill Dmitriev, welcomed the deal on social media.
Zelensky responded on social media that Russia would repay the diesel with "further terror" and called for a "strong" American response to Russia rather than a weak one.
Analysis from investment strategist Tim Armitage at Quilter Cheviot suggested the deal may have limited effect on American pump prices. The first tranche equated to approximately 2.25 million barrels, while daily US consumption runs around 3.8 million barrels. Armitage characterized the move as "a slightly desperate move by President Trump to try to lower inflation ahead of the midterms."
The average diesel price in the US currently stands at $6.28 per gallon according to AAA, down from a September record of $6.53. Before the war in Ukraine began in February, Brent crude traded around $73 a barrel and now trades above $103.
The UK government said its position "could not be clearer" and committed to maintaining the "toughest sanctions regime ever imposed" on Russia while supporting Ukraine. The BBC asked the White House what Russia will receive in return for the diesel commitment but did not report a response. The announcement represents a reversal from recent congressional legislation authorizing new sanctions on nations importing Russian oil and gas.