President Donald Trump said on Friday that Russia would immediately supply more than 300,000 metric tonnes of diesel to US and global markets, followed by 500,000 tonnes in November and 1 million tonnes shortly afterwards. In a post on Truth Social, Mr Trump described his discussion with President Putin as "highly successful" and said Moscow would deliver a further 3 million tonnes depending on the condition of Russian refineries, which have been damaged by Ukrainian attacks. CNBC reported the total package at more than 4 million tonnes.
The US Treasury Department issued a general licence on Friday allowing the import of Russian diesel. ABC News reported the licence runs until April 7, while CNBC reported it runs through April 2027. The White House did not immediately respond to questions about who would pay for the fuel, when it would become available, or whether the November shipment would arrive before the November 3 midterm elections. The agreement came about a month after Mr Trump signed a sweeping Russia sanctions law aimed at clamping down on the energy revenues funding Russia's war against Ukraine.
Ukrainian President Volodymyr Zelenskyy condemned the deal. "Gifts to Putin will not bring peace or any benefit to the civilised world," he said on social media. "Russia will repay the diesel with further terror and perfidy. Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged."
Diesel prices are up 70 per cent since the US and Israel launched war with Iran on February 28. Combined with Ukraine's strikes on Russian refineries and attacks on Middle East refining capacity, the conflicts have triggered a severe global fuel supply crunch. Average US diesel prices reached $US6.28 a gallon ($2.37 a litre) on Thursday, according to the AAA motorist group. Mr Trump has already pressed allies to release emergency reserves and expanded access to tax-exempt red-dyed diesel for truckers.
Energy analysts questioned whether the deal would meaningfully lower prices. "I cannot overstate how much of a nothing burger this is," said Rory Johnston, an oil market researcher and founder of CommodityContext.com, noting that Russia usually exported far more diesel when its refineries were not under attack. The immediate 300,000 tonnes equals about 2.25 million barrels, compared with US diesel exports of roughly 1.5 million barrels per day. "It's clearly not a fix, but another stream to aid a very tight diesel market," said Jim Mitchell, an analyst at Wood Mackenzie. US diesel futures fell sharply on the news, trading down more than 4.8 per cent at $US4.64 a gallon.