Donald Trump has agreed to open the US market to Russian diesel, a move that gives Vladimir Putin an outlet for fuel supplies while Ukraine argues it will prolong the war.
Trump said Putin had agreed to release 300,000 tonnes of diesel immediately to American and global markets. He said 500,000 tonnes would follow in November, then another million tonnes, with a further three million tonnes due within a short period if the condition of Russia’s refineries allowed it.
The US Treasury moved shortly afterwards, issuing a temporary licence allowing Russian diesel into the market. It is suspending sanctions on Russian diesel exports until 7 April as part of the arrangement.
Putin had introduced a ban on diesel exports earlier this year as fuel shortages spread after Ukrainian drone strikes damaged Russian refineries. Russia has experienced two waves of severe fuel shortages this year, and the International Energy Agency estimates that its diesel production has fallen by nearly 30%.
Putin said he had discussed the global energy situation with Trump on Friday. He said Russia was prepared to supply the US and global markets with oil and petroleum products.
The immediate shipment is modest beside American demand. Tim Armitage, an investment strategist at Quilter Cheviot, said 300,000 tonnes was approximately 2.25 million barrels, while US daily consumption was around 3.8 million barrels.
US diesel prices stand at $6.28 (£4.74) a gallon, according to the AAA, down from a record $6.53 at the end of September. Trump has criticised Ukrainian attacks on Russian refineries, saying they were driving fuel prices higher.
Volodymyr Zelensky, Ukraine’s president, described the deal as a gift to Putin and an investment in a war that should be ended rather than prolonged.
He said Russia would repay the diesel with further terror. Zelensky said Ukraine’s refinery strikes answered Russia’s years-long campaign of terror against Ukraine’s energy sector.
“Ukraine will not set Russian oil refineries on fire if Russia does not destroy Ukraine’s energy infrastructure,” Zelensky said.
He said he was counting on fair American support for Ukraine’s defence and on a strong US conversation with Russia.
The agreement comes after Congress enacted legislation, signed by the president, authorising new US sanctions and tariffs on countries importing Russian oil and gas.
Kirill Dmitriev, Putin’s envoy, welcomed the agreement on social media. “Russia-US co-operation on diesel and energy will benefit the world,” he said.
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