Donald Trump has announced a deal to import Russian diesel into the US, a move that has been condemned by Ukraine's President Volodymyr Zelensky as a "gift to Putin" that amounts to "an investment in a war that must be ended, not prolonged".
Trump stated that Putin had agreed to release 300,000 tonnes of diesel immediately to the "American and global marketplace," followed by 500,000 tonnes in November and another million thereafter. It is understood that the US Treasury is suspending sanctions on Russian diesel exports until April 7 as part of the deal, though other assets remain frozen.
In a post on Truth Social, Trump added that a further three million tonnes of Russian diesel would be delivered "within a short period," contingent on the condition of its refineries, which have been attacked by Ukraine. Putin later confirmed Russia's willingness to supply oil and petroleum products to US and global markets, though his statement did not specify amounts.
Zelensky responded on social media, stating that Russia would repay the diesel with "further terror." He expressed hope for "America's fair support for our defence of life, for our defence of people in Ukraine – and on the United States having a correspondingly strong conversation with Russia. A strong one, not a weak one."
Analysts, however, have questioned Russia's capacity to provide the announced quantities and whether this will significantly ease prices for American consumers. Tim Armitage, investment strategist at Quilter Cheviot, noted that the initial tranche of 2.25 million barrels is relatively small compared to daily US consumption of around 3.8 million barrels, suggesting it "won't make a material difference to pump prices in the US." He described the move as "a slightly desperate move by President Trump to try to lower inflation ahead of the midterms."
The BBC has inquired with the White House about what Russia will receive in return for this commitment.
A UK government spokesperson stated that the UK's position "could not be clearer" and that they would continue working with international partners to support Ukraine and promote peace, while maintaining pressure on Russia through sanctions.
This announcement is the latest effort by Trump to lower fuel prices in the US, amidst political pressure stemming from the ongoing conflict and its impact on global energy prices. The conflict has led to skyrocketing petrol and diesel costs in America, negatively affecting public opinion.
The average diesel price in the US is currently $6.28 (£4.74) a gallon, down from a record high of $6.53 in late September. Shortly after Trump's announcement, the US Treasury issued a temporary license allowing Russian diesel into the market.
Putin stated he had discussed the global energy situation with Trump, and the "Russian side confirmed its willingness to supply oil and petroleum products to the US market and global markets at large." An envoy for Putin, Kirill Dmitriev, welcomed the deal, saying "Russia-US co-operation on diesel and energy will benefit the world."
A UK government spokesperson reiterated their commitment to supporting Ukraine and maintaining sanctions on Russia, stating, "Russia could end this war today. We remain committed to supporting Ukraine for as long as it takes and to working with partners to bring about a durable peace."
Russia has experienced fuel shortages this year due to Ukrainian drone strikes on its oil refineries, with its diesel production estimated to have fallen by nearly 30%. Trump has blamed these attacks for rising fuel prices, while Zelensky defended them as a response to "Russia's years-long campaign of terror against Ukraine's energy sector."
The details of the deal remain unclear, including how Russia will supply the fuel and what it will receive in return. This agreement represents a significant shift, as the US Congress recently passed legislation authorizing new sanctions and tariffs on nations importing Russian oil and gas. The deal could also expose Trump to criticism from allies and pro-Ukraine politicians for potentially funding Moscow's war effort.
The impact on fuel prices is uncertain, with the global benchmark for crude oil, Brent, remaining above $103 a barrel, compared to about $73 before the conflict with Iran. With the midterm elections approaching, Trump has been seeking ways to alleviate political pressure, including considering suspending the federal tax on gasoline and allowing red dye diesel to be used on US highways without federal tax. He also previously supported efforts to release oil from stockpiles and a ban on diesel exports from the US.
