Trump Announces Deal for Russia to Resume Diesel Sales to US as Zelensky Warns of ‘Gift to Putin’

The Trump administration has announced a deal to allow Russia to resume selling diesel to the United States, a move aimed at lowering domestic fuel prices that has drawn immediate condemnation from Ukrainian President Volodymyr Zelensky. The announcement, made Friday via Trump’s Truth Social platform, claims Russia will supply over 300,000 tons of diesel immediately, with additional shipments of 500,000 tons in November and another million tons shortly after. A further three million tons were mentioned but conditioned on the state of Russian refineries.

The core mechanism enabling this flow is a temporary license issued by the US Treasury’s Office of Foreign Assets Control (OFAC). The license, valid until April 7, 2027, authorizes the sale, delivery, discharge, and import of Russian-origin diesel into the United States. Critically, the measure does not lift broader sanctions on Russia; it carves out a specific commercial exemption for diesel. Russia, which had previously restricted its own exports to preserve domestic supply, has also signaled it will begin lifting those limitations.

The policy is a direct response to a severe diesel price spike in the US. According to the American Automobile Association (AAA), the national average for diesel is $6.28 per gallon, or roughly $1.66 per liter—a 70% increase year-over-year. This price surge is not simply a crude oil problem. A Dallas Federal Reserve analysis cited in the reporting indicates that global refining capacity has been reduced by up to 10% due to a combination of factors: the war with Iran disrupting maritime transport and Middle Eastern facilities, and Ukrainian attacks on Russian refineries. More crude oil does not automatically produce more diesel if refineries cannot process it.

Key facts

Zelensky denounces a gift to Putin

The decision has provoked an immediate and sharp reaction from Kyiv. President Zelensky characterized the move as a direct financial lifeline for Russia’s war effort. He argued that allowing Moscow to sell more petroleum products would provide it with revenue to prolong the conflict, stating that “gifts to Putin will not bring peace nor any benefit to the civilized world.” Zelensky defended Ukraine’s attacks on Russian energy infrastructure as a response to Russian bombings, and proposed halting those operations only if Russia stops destroying Ukraine’s energy infrastructure—a condition linking any de-escalation to reciprocal commitments.

Market reaction and unanswered questions

US diesel futures fell approximately 4% following the announcement, as reported by NBC News. This is a significant market signal, but it does not confirm that consumers or businesses will ultimately pay less at the pump. Several unknowns remain. The actual volume of diesel that will physically arrive in the US market is unverified. It is also unclear whether the supply will be sufficient to offset the refining and logistical disruptions that have driven prices up. With congressional elections scheduled for November 3, the administration is under pressure to show tangible results. For now, what is verifiable is the regulatory authorization and the announcement, not a final price reduction.

The practical impact for US businesses and consumers is tied to the transportation sector. Diesel is the primary fuel for trucks moving goods from ports and warehouses to stores. Even a modest reduction in diesel prices could lower the cost of shipping goods, potentially easing broader inflationary pressures. However, the mechanism is indirect and depends on the supply chain functioning as promised.

Source: Xataka IA (https://www.xataka.com/energia/trump-anuncia-acuerdo-rusia-vuelva-a-vender-diesel-zelenski-denuncia-regalo-a-putin)