WASHINGTON: US President Donald Trump has agreed a deal with Russian President Vladimir Putin to import large volumes of Russian diesel, and the United States has announced it will lift sanctions on Russian diesel until April 2027. The decision marks a sharp shift for Washington, which has imposed tough sanctions on Moscow since the war in Ukraine began.
The announcement drew criticism from members of Trump’s own party and from the public. Trump has since offered a public explanation, saying the arrangement is a diesel deal and is not driven by American self-interest. He said fuel prices are soaring worldwide and that sourcing diesel from Russian refineries is intended to stabilise an international market strained by high prices.
Midterm elections are due in the United States in November. Rising fuel prices and inflation at home have fuelled voter dissatisfaction with the government. Trump spoke directly with Putin by phone to settle the arrangement, and the talks led to the temporary easing of sanctions on Russian diesel.
Supply schedule
Under the agreement, Russia is to supply more than 300,000 tonnes of diesel to the United States and the international market immediately. A further 500,000 tonnes is to be shipped in November, followed shortly afterwards by another 1 million tonnes. Depending on the capacity and condition of Russian refineries, plans have been drawn up to supply as much as another 3 million tonnes within a short period.
Middle East supply concerns
The deal comes as supply from the Middle East faces fresh strain. Houthi rebels from Yemen have carried out ballistic missile attacks on the headquarters of Saudi oil company Aramco, severely disrupting the oil supply system, according to the source report. With tensions rising in the region and refineries coming under attack, there is a growing risk of petrol and diesel shortages worldwide. Observers believe the move towards Russian supply is intended in part to fill that gap.