President Donald Trump has announced a deal with Russian President Vladimir Putin to supply over 4 million tons of diesel to the global market, including to the U.S., as the Treasury Department temporarily waived sanctions on Russian diesel.
The move, intended to combat surging global fuel prices exacerbated by conflicts in Ukraine and the Middle East, immediately drew sharp criticism from Ukrainian President Volodymyr Zelenskyy, who warned against legitimizing Russia’s actions.
Trump faces increasing political pressure to lower fuel costs ahead of the November midterm elections, although previous attempts to address the crisis have yielded mixed results.
In a significant and contentious move, President Donald Trump announced Friday that he has struck a deal with Russian President Vladimir Putin to supply over 4 million tons of diesel to the global market, a measure intended to alleviate surging fuel prices worldwide.
VIDEO: President Trump announces diesel supply agreement with Russia (2:32)
Trump detailed the agreement in a Truth Social post, outlining an immediate supply of more than 300,000 tons of diesel, followed by 500,000 tons in November, and an additional 1 million tons shortly thereafter. A further 3 million tons are contingent on the condition of Russia's refining capacity. To facilitate this, the U.S. Treasury Department issued a temporary waiver on sanctions against Russian diesel, effective until April 2027.
The agreement was met with immediate and fierce condemnation from Ukrainian President Volodymyr Zelenskyy, who warned that easing sanctions without a firm commitment from Moscow to de-escalate the conflict would only prolong the war. In a social media post, Zelenskyy stated, "Gifts to Putin will not bring peace or any benefit to the civilized world... Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged."
Global diesel prices have seen a dramatic increase, largely due to Ukrainian attacks on Russian refineries, which prompted Moscow to ban diesel exports. Further compounding the issue, Iranian and Houthi forces have targeted refineries in the Middle East, exacerbating an already tight global fuel supply.
The timing of Trump's deal comes as he faces mounting political pressure to address rising fuel costs ahead of the critical November midterm elections. Republicans, in particular, are feeling the heat in key conservative states like Iowa, where agricultural communities are heavily impacted by high diesel prices.
Despite the urgency, the president has limited options to significantly reduce prices given the extensive damage to global refining infrastructure caused by conflicts in Eastern Europe and the Middle East. Trump had previously considered a diesel export ban last month but backed down after warnings from the oil industry that such a measure could paradoxically increase gasoline prices.
Earlier this week, Trump issued an executive order allowing truckers to use tax-exempt offroad diesel on highways, temporarily bypassing federal penalties. However, this order merely defers the tax obligation, leaving uncertainty about potential future payments for truckers.
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