Trump Announces Russia Diesel Deal with Putin

President Donald Trump announced an agreement with Russian President Vladimir Putin for the immediate supply of over 300,000 tons of diesel fuel to global markets. The move prompted an immediate Treasury Department license for the shipments and drew sharp condemnation from Ukrainian leadership.

Russia Will Supply 3 Million Tons of Diesel Fuel

Trump detailed the arrangement on Truth Social, stating that Russia will supply over 300,000 tons of diesel fuel immediately, followed by another 500,000 tons in November and 1,000,000 tons immediately thereafter. The announcement includes a total delivery of 3,000,000 tons of diesel fuel within a short period.

To facilitate the transaction, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued a temporary general license enabling Russian diesel to enter the global market. Trump asserted that combined with oil moving out of the Strait of Hormuz, these supplies will drive down diesel prices for Americans and the global market quickly and in record numbers.

During a call between the two leaders, Putin noted that the supplies will have a positive impact on the global economy. Kirill Dmitriev, a Russian special envoy who worked on the deal, stated on X that Russia-US energy and economic cooperation will continue and benefit world markets.

Zelensky Says Sanctions Relief for Russia Funds the War

Ukrainian President Volodymyr Zelensky responded angrily to the announcement, writing on X that any sanctions relief for Russia outside of a lasting de-escalation agreement represents an obvious weakness. Zelensky argued that gifts to Putin will not bring peace and that allowing Russia to sell petroleum products is an investment in a continuing war.

Zelensky added that Ukraine told U.S. envoys Jared Kushner and Steve Witkoff that Kyiv is ready to take symmetrical de-escalatory steps, proposing an agreement where Ukraine refrains from striking Russian oil refineries if Russia halts attacks on Ukrainian energy infrastructure. Meanwhile, analysts pointed to broader supply constraints, noting that Ukrainian strikes cut Russia’s available refining capacity by up to 60 percent over the summer.

Combined with Middle East refinery outages, shipping constraints, and curtailed Chinese refining, the global fuels market has faced capacity reductions of 6 million to 8 million barrels per day since late spring. Joseph Webster, an energy and geopolitics analyst with the Atlantic Council, stated that Putin is trying to opportunistically shift blame for high diesel prices onto Ukraine rather than the war devastating global supply chains, adding that the purported Russian export volumes are uncertain and too small to address the global shortage.

More on this story: Trump Secures Russia Diesel Deal to Lower US Fuel Prices Amid Surging Costs · Trump Administration Pressures Europe to Release Diesel Reserves to Lower Prices