Trump strikes diesel deal with Putin in dramatic reversal of Russia sanctions
Washington will temporarily lift energy sanctions to allow millions of tonnes of Russian diesel into world markets, as President Trump moves to cut fuel prices weeks before the US midterms.
Donald Trump has struck a deal with Vladimir Putin under which Russia will supply millions of tonnes of diesel to American and world markets, in a dramatic reversal of years of US sanctions pressure on Moscow over its war in Ukraine.
Announcing the agreement on Friday after a phone call he described as highly successful, Mr Trump said Russia would immediately supply more than 300,000 tonnes of diesel, with a further 500,000 tonnes in November and another million tonnes immediately afterwards. An additional three million tonnes would follow within a short period, depending on the condition of Russian diesel refineries.
The US Treasury has announced a temporary six-month licence easing certain energy sanctions to allow the Russian diesel shipments to reach global markets, according to the Associated Press. The move marks a significant shift in Washington's approach to Moscow, coming weeks after Congress passed sweeping new sanctions aimed at curbing Russia's energy revenues.
Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority.Donald Trump
The announcement is aimed at soaring fuel prices. US diesel stood at 6.23 dollars a gallon on Friday, according to AAA, having reached a record 6.52 dollars in late September, and prices have risen about 70 per cent since the start of the war between the United States, Israel and Iran, according to Reuters. The world is short of about 1.6 million barrels of diesel a day, the International Energy Agency said last month.
Mr Trump wrote on social media that lower prices for Americans, especially farmers, ranchers and truckers, was his greatest priority. The announcement lands less than four weeks before the November 3 midterm elections, in which his party is defending its narrow control of Congress.
Ukrainian President Volodymyr Zelenskiy criticised the agreement, saying it risked helping Moscow finance its war while American and Ukrainian officials were working to end the conflict. He said his team was being used as a smokescreen, calling the arrangement unfair and not how partners should treat one another.
Mr Zelenskiy warned that gifts to Putin would not bring peace or any benefit to the civilised world, and described the move as a weak decision by strong partners. Mr Trump's envoy Steve Witkoff and his son-in-law Jared Kushner were meeting Ukrainian officials when the announcement was made.
Mr Putin said the two leaders had devoted significant attention to the prospects of resolving the Ukrainian crisis during their call, according to a Kremlin statement, adding that he was confident it would have a positive impact on the entire global economy. The White House did not immediately clarify who would pay for the Russian diesel or when the shipments would become available, the Associated Press reported.
The agreement raises questions about how the administration will reconcile its drive to cut fuel costs with its sanctions policy and its stated aim of pressuring Russia to negotiate an end to the war in Ukraine. The total volumes announced amount to roughly 36 million barrels; if all of it were released at once, it would cover about three weeks of the current global diesel shortfall, according to the Wall Street Journal.
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