Trump announces deal for Russian diesel as Zelensky criticises 'gift to Putin'
Quick Look
- US President Donald Trump announced an agreement with Russian President Vladimir Putin to release Russian diesel into the global market, starting with 300,000 tonnes immediately, followed by additional shipments.
- The deal aims to lower diesel prices in the US and worldwide, though Ukraine's president criticized it as prolonging the war.
- The US Treasury issued a temporary license for the diesel release, and Trump has pursued other measures to reduce fuel costs ahead of midterm elections.
AI-generated summary
Why It Matters
Diesel prices in the US have doubled since the war with Iran began in February, increasing cost-of-living pressures ahead of the midterm elections. Trump has pursued multiple strategies to lower fuel prices, including suspending federal gasoline taxes, allowing red dye diesel on highways, and pressuring G7 nations to release stockpiled oil and diesel.
US President Donald Trump says he has reached an agreement with Russian President Vladimir Putin allowing Moscow to "immediately release" diesel into the global market.
He said Putin had agreed to release 300,000 tonnes of diesel immediately, followed by 500,000 tonnes in November and another million after that.
"Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!" Trump wrote on Truth social.
An envoy to Putin welcomed the deal, but Ukraine's president said any easing of sanctions on Russia played into Moscow's hands and would prolong a war that must be ended.
Diesel prices in the US have doubled since the war with Iran began in February, putting pressure on Republicans ahead of the midterm elections over the rising cost of living.
The average diesel price in the US is currently $6.28 a gallon, according to the AAA, down from the record high of $6.53 recorded at the the end of September.
Shortly after Trump's announcement, the US Treasury formally issued a temporary license allowing Russian diesel into the market.
An envoy for Putin, Kirill Dmitriev, welcomed the deal on social media, saying: "Russia-US co-operation on diesel and energy will benefit the world."
But Volodymyr Zelensky hit out at the deal, saying Russia would repay the diesel with "further terror".
"Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged," he wrote on social media.
The BBC has contacted the White House for comment on what reimbursement the US is providing Russia in return for the release of diesel.
What impact it will have on fuel prices remains unclear. The global benchmark for crude oil, Brent, remains above $103 a barrel. Before the war with Iran, Brent crude was trading at about $73 a barrel.
It is the latest effort from the president to lower fuel prices in the US.
Earlier this week, Trump said he was "thinking about" suspending the federal tax on gasoline, and also announced that he would allow so-called red dye diesel to be used on US highways without facing federal tax.
He has also successfully pressured G7 nations into releasing 100 million barrels of oil and diesel from stockpiles to help ease supply concerns, and previously supported calls for a ban on diesel exports from the US.
What to Watch
AI outlook — possibilities, not facts
Diesel prices in the US will decline in the coming weeks due to increased supply from the Russian diesel release.
Likely · Within weeks
The deal will face continued criticism from Ukraine and possibly other Western allies concerned about sanctions erosion.
Very likely · Within weeks
Open Questions
- What reimbursement is the US providing Russia in return for the diesel release?
- How will the diesel release affect global diesel and crude oil prices over time?
- What are the specific terms and duration of the temporary license issued by the US Treasury?
- How will this deal impact existing sanctions on Russia?
