Donald Trump announced a deal to import Russian diesel into the United States, with the Trump administration temporarily suspending sanctions on Russian diesel exports through April 7. The arrangement calls for 300,000 tonnes of diesel to enter the market immediately, followed by 500,000 tonnes in November and an additional million tonnes after that, according to Trump's statement on Truth Social. Trump said a further three million tonnes would arrive within a short period, pending the condition of Russian refineries damaged by Ukrainian strikes.
Ukraine's President Volodymyr Zelensky condemned the deal as a "gift to Putin" that amounts to "an investment in a war that must be ended, not prolonged." Zelensky pointed to overnight Russian attacks on Zaporizhzhia and Kyiv as Russia expressing "its thanks" for the agreement. The EU's foreign affairs chief Kaja Kallas said suspending sanctions "provides Moscow with more revenues to wage war," noting that Europe would not ease pressure on Russia and planned to approve additional sanctions on Monday. The UK government stated it would maintain its existing sanctions regime and continue supporting Ukraine.
Putin confirmed Russia's willingness to supply oil and petroleum products to US and global markets, though his statement did not specify quantities. The US Treasury issued a temporary licence allowing Russian diesel into the market following Trump's announcement.
Investment strategist Tim Armitage at Quilter Cheviot questioned whether the deal would meaningfully impact US fuel prices. He calculated the first tranche at approximately 2.25 million barrels, while daily US consumption stands at around 3.8 million barrels. The average US diesel price currently sits at $6.28 per gallon, down from a record high of $6.53 in late September.
Analysts raised questions about Russia's capacity to deliver the promised volumes and the extent to which the arrangement would ease American pump prices. Trump's announcement represents a reversal from recent congressional legislation authorizing new sanctions on nations importing Russian oil and gas, which Trump had signed.
Russia experienced a nearly 30% decline in diesel production this year following Ukrainian drone strikes on its refineries, according to International Energy Agency estimates.