US President Donald Trump has announced a new agreement with Russian President Vladimir Putin that will allow Moscow to immediately release diesel supplies into the global market. According to the plan, Russia is set to release 300,000 tonnes of diesel immediately, followed by 500,000 tonnes in November, with a further one million tonnes to follow. Writing on Truth Social, Trump stated that diesel prices for Americans and the world would be coming down in record numbers and fast.
The announcement comes as the US faces significant pressure regarding the rising cost of living ahead of the upcoming midterm elections. Data from the AAA indicates that the average price of diesel in the US is currently $6.28 a gallon, a decrease from the record high of $6.53 recorded at the end of September. Since the conflict with Iran began in February, US diesel prices have effectively doubled.
Shortly after the president's announcement, the US Treasury formally issued a temporary license permitting the entry of Russian diesel into the market. When asked about potential reimbursement or concessions provided to Russia in exchange for these supplies, the White House did not immediately comment.
The move has faced direct condemnation from Ukrainian President Volodymyr Zelensky. In a statement on social media, Zelensky argued that allowing Russia to sell petroleum products serves as an investment in a war that requires an end rather than prolongation. He described the development as a gift to Putin.
Russia has faced significant fuel supply challenges this year, with production estimated by the International Energy Agency to have declined by nearly 30% following Ukrainian drone strikes on oil refineries. While Trump has previously expressed displeasure over these attacks, blaming them for inflated fuel prices, Zelensky defended the actions on Friday. The Ukrainian leader stated that the strikes are a response to Russia's years-long campaign against Ukraine's energy infrastructure, noting that Ukraine would not target refineries if Russia did not destroy their own energy systems.
In a broader effort to address fuel costs, Trump has recently considered suspending the federal gasoline tax and announced that red dye diesel could be used on US highways without federal tax penalties. Additionally, he has pressured G7 nations to release 100 million barrels of oil and diesel from national stockpiles and has previously supported calls for a ban on US diesel exports.
