President Donald Trump announced a bilateral agreement with Russia to supply hundreds of thousands of tons of diesel fuel to the American and global markets, bypassing existing sanctions through a temporary Treasury waiver valid until April 2027.
US President Donald Trump announced the arrangement following a telephone conversation with Russian President Vladimir Putin. According to the Russian state news agency Interfax, citing presidential foreign policy adviser Yuri Ushakov, the call lasted an hour and a half and was described by the Kremlin as very substantial and friendly, with neither leader wanting to be the first to hang up before they literally hung up simultaneously. Under the terms of the accord, Russia will supply more than 300,000 tons of diesel fuel immediately to the United States and the international market, with an additional 500,000 tons scheduled for delivery in November, a further million tons in December, and three million tons in a short time depending on the condition of Russian diesel refineries.
The US Department of the Treasury issued a temporary license allowing the sale, delivery, offloading, and import of Russian diesel until April 7, 2027. The Kremlin confirmed the arrangement, noting in a written statement that the Russian side stands ready to supply oil and petroleum products to both the American and global markets, which Putin asserted would positively impact the entire world economy.
Congressional Elections Loom Over Fuel Prices
The agreement comes just three and a half weeks before the US congressional elections on November 3. Diesel prices in the United States have remained above $6 per gallon for roughly a month, reaching record highs following disruptions tied to the conflict involving Iran.
Republicans facing competitive races have urged the administration to address the soaring costs at the pump. Trump explained on his social media platform, Truth Social, that lower prices are a priority, later telling journalists at the White House that the pact was a big deal and thanking Putin.
According to data from the US Energy Information Administration cited by energy analyst Gregory Brew of the Eurasia Group, the initial 300,000 tons amounts to approximately 74,000 barrels, while total US daily consumption sits at roughly 3.77 million barrels, meaning 300,000 tons covers roughly 14 hours of US consumption. An Institute of the German Economy expert, Samina Sultan, told the German Press Agency that the immediate volume is too small to make a major difference, calling it largely a symbolic action.
Sharp Rebuke From Kyiv and European Reactions
Ukrainian President Volodymyr Zelenskyy strongly condemned the deal, characterizing it as unfair and dishonest, and an investment in the ongoing war rather than a path to ending it, warning that Moscow will respond with further terror and malice. Zelenskyy expressed particular anger that Trump’s special envoys Steve Witkoff and Jared Kushner were simultaneously meeting with Ukrainian negotiators in Miami to discuss a potential end to the conflict without mentioning the impending diesel pact.
“That is certainly not decent, it is certainly unworthy of our partners, and from my perspective it is a weak decision.”
Volodymyr Zelenskyy, President of Ukraine, via Yahoo Finanzen Deutschland
Democratic lawmakers in Washington also lambasted the reversal, which came after Trump signed a bill sponsored by Senator Lindsey Graham designed to choke off Russian energy revenues.
In Berlin, government spokesperson Stefan Kornelius emphasized that Germany and the European Union remain firmly committed to existing sanctions packages, noting that Berlin continues working with European partners on additional measures and that Germany has sourced no oil or petroleum products from Russia since 2023. Officials from the German economic sector similarly indicated that domestic refineries and fuel markets anticipate no significant price shifts due to the US-Russia arrangement, as an import ban on Russian diesel has been in force across the EU since February 5, 2023.