Trump Announces 4.8M Tons of Russian Diesel in Sanctions U-Turn

WASHINGTON: President Donald Trump announced Friday that Russia has agreed to supply millions of tons of diesel fuel to American and global markets, reversing years of United States sanctions policy on Russian energy in a bid to bring down fuel prices less than a month before the November midterm elections.

Trump said the agreement followed what he described as a highly successful discussion with Russian President Vladimir Putin. Russia would immediately supply more than 300,000 tons of diesel fuel, followed by 500,000 tons in November, another 1 million tons right after, and then 3 million tons within a short period, depending on the state of its diesel refineries. In total, the deal covers about 4.8 million tons.

The Treasury Department's Office of Foreign Assets Control issued a temporary general license waiving select American sanctions on Russian diesel sales through April 2027.

Trump framed the deal as help for working Americans, saying on Truth Social that lower prices for the country's farmers, ranchers, and truckers were his greatest priority. Leaving the White House for an evening rally in upstate New York, he thanked Putin.

Why it matters

The decision is a sharp U-turn in American Russia policy. Washington banned imports of Russian petroleum products in 2022 after Moscow's invasion of Ukraine, and just three weeks ago Trump signed a sweeping new Russia sanctions bill named after the late Senator Lindsey Graham.

The timing is unmistakably political. Diesel prices have surged since late February, when American and Israeli strikes on Iran triggered Tehran's blockage of the Strait of Hormuz, a critical route for energy transit. The national average diesel price stood at $6.28 a gallon on Friday, up from $3.68 a year ago, according to AAA. Rising fuel costs have hit farm states hard, feeding Republican fears of losing both chambers of Congress on November 3.

The context

Ukraine's president, Volodymyr Zelensky, condemned the move in unusually blunt terms. He told reporters it was unworthy of partners and, in his view, a weak decision, adding in an interview with Axios that it looked like a happy birthday present for Putin. On social media, he warned that gifts to Putin would not bring peace and that Russia would repay the arrangement with further terror and perfidy.

The Kremlin confirmed its side of the deal. Putin said Moscow had reaffirmed its readiness to supply oil and refined products to American and global markets. His office said the two leaders also devoted significant attention to the prospects of resolving the war in Ukraine.

Russia's ability to deliver is an open question. Moscow suspended diesel exports earlier this year after Ukrainian strikes damaged its refineries. Trump himself made the final 3-million-ton tranche conditional on the state of those refineries.

Market analysts were skeptical the volumes would calm prices. Strategists cited by MarketWatch noted the announced amounts equal roughly a day and a half of American diesel demand, calling the move possibly too little, too late. On Friday, West Texas Intermediate and Brent crude futures settled 0.4 percent higher while ultralow-sulfur diesel futures fell 3 percent.

What's next

The White House did not say who will pay for the diesel or when the first shipments would reach American ports, according to the Associated Press. Congress will now have to reconcile the deal with the Russia sanctions law it passed last month. The Treasury license runs through April 2027, giving the administration a window to test whether Russian supply brings real relief at the pump.

Key numbers

• 300,000+ tons: immediate Russian diesel supply announced by Trump
• 500,000 tons: promised for November; 1 million tons immediately after; 3 million more pending refinery conditions
• $6.28: national average diesel price per gallon Friday, versus $3.68 a year ago (AAA)
• April 2027: expiry of the Treasury's temporary sanctions waiver
• November 3: midterm election date