Trump says he has deal for Russian diesel as Treasury eases sanctions

Oct. 9 (UPI) — President Donald Trump on Friday said he secured a deal with Russia to supply millions of tons of diesel fuel to the global market.

Trump said Russian President Vladimir Putin agreed to immediately supply more than 300,000 tons of diesel, followed by another 500,000 tons in November and 1 million tons shortly afterward.

The announcement came as the Treasury Department said it was issuing a temporary license allowing Russian diesel to be sold on the global market despite existing U.S. sanctions. The license will remain in effect until April 7.

“Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!” Trump wrote on Truth Social. “Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority.”

The move marks a reversal of U.S. efforts to restrict Russian energy exports over Moscow’s war in Ukraine.

The United States banned imports of Russian oil and other energy products in 2022 following Russia’s invasion of Ukraine.

“Gifts to Putin will not bring peace or any benefit to the civilized world,” Ukrainian President Volodymyr Zelensky said in a statement following the diesel announcement. “Russia will ‘repay’ the diesel with further terror and perfidy.

“Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged. What is needed is real de-escalation with Russia on a reciprocal basis.”

Trump signed new sanctions legislation targeting Russia’s energy sector last month, including measures against Russian banks, officials and oil tankers used to circumvent international restrictions.

The new agreement comes as diesel prices have surged amid the ongoing war in Iran, which has disrupted global oil supplies and shipping through the Strait of Hormuz.

The price of diesel has climbed nearly 70% since the start of the Iran war in February. The national average price for diesel was about $6.27 per gallon Friday, according to AAA.