Diesel deal significance hardly be overestimated — investor

NEW YORK, October 12. /TASS/. The agreements between Russia and the United States on diesel fuel supplies will have a positive effect on Russia in several areas, Director of US-based Navigator Principal Investments Kyle Shostak told TASS.

"As for Russia, the significance of the diesel deal can hardly be overstated. First, Russian producers previously exported a much larger quantity of diesel. Second, the domestic market experiences the least deficit specifically in diesel," Shostak said. "Third, even if the stated export volumes roughly correspond to the current capabilities of producers, the very fact of these deliveries will promote healthy competition, the expert noted.

"Russia will be the beneficiary of the breakthrough, even if temporary, of the Western sanctions blockade," Shostak said. Such supplies "entail corresponding easing in the regime of payments, freight, insurance, and related logistics," he stressed.

"It is difficult to judge how financially profitable such deliveries might become in view of the ongoing hostilities, but it is obvious that Russian companies, both state-owned and private, will not carry them out at a loss," the expert said. "Supplies from Russia will almost certainly be performed by companies on various sanctions lists, for whom this will be a good way to test how the US regulator applies exemptions to the rules," he added.

On October 9, Russian President Vladimir Putin and US leader Donald Trump held a phone call during which they discussed the supply of petroleum products in particular. Moscow confirmed its readiness to supply oil and petroleum products to the American and global markets, the Russian leader said. The Washington administration is exempting supplies of Russian diesel fuel to global markets from US sanctions until April 7, 2027.