Archive · 12 Oct 2026
Bessent Defends Russian Diesel Deal Amid Sanctions Law Questions
The United States and Russia have made a plan for Russia to sell diesel to world markets.
President Donald Trump said the shipments could add up to nearly five million tonnes.
The United States issued a temporary licence that allows Russian diesel purchases until April 7, 2027.
Russia also eased its ban on diesel exports.
Treasury Secretary Scott Bessent said the deal could help bring down prices for Americans.
He said the administration has legal authority to carry it out.
A new US law also sets deadlines for tariffs connected to Russian energy trade.
The articles say it is still unclear how the law’s provisions apply to the deal.
One part of the law counts purchases of crude oil and natural gas, not diesel, when identifying certain countries for tariffs.
Treasury Secretary Scott Bessent said the administration would use available legal authorities to proceed with the Russian diesel deal and rejected claims that the sanctions law bars it.
President Donald Trump said Russia would supply more than 300,000 tonnes initially, followed by further shipments that could total nearly five million tonnes.
The United States issued a temporary general licence allowing purchases of Russian diesel through April 7, 2027; Russia also eased its diesel export ban.
The law sets October 18 deadlines for potential tariffs, including duties of up to 500% on Russian goods and up to 100% on goods from certain major buyers of Russian crude or gas.
Bessent said the deal could lower diesel prices for Americans and accused Europe of hypocrisy; the articles note uncertainty over the law’s application, while its buyer-tariff provision counts crude oil and natural gas, not diesel.
- Who
- The US administration, including Treasury Secretary Scott Bessent and President Donald Trump, and Russia, including President Vladimir Putin.
- What
- A proposed Russian diesel supply deal defended by Bessent amid questions about the US sanctions law.
- When
- Announced Friday; Bessent discussed the law on Sunday. The cited tariff deadlines are October 18, and the temporary licence runs through April 7, 2027.
- Where
- The United States, Russia, and international diesel markets.
- Why
- Bessent said the deal would benefit Americans by helping lower diesel prices; Russia said its production could meet domestic demand and allow exports.
Administration's case
Criticism and legal concerns
Whether the deal can proceed under the law
Administration's case
Bessent said claims that the law bars the deal are wrong and that the administration will use available legal authorities.
Criticism and legal concerns
The deal has prompted objections and questions about how it interacts with the law’s tariff provisions; Bessent did not specify which legal authorities the administration would rely on.
Effect of the deal on energy policy
Administration's case
Bessent said Russian diesel could lower prices for Americans and criticized European countries for opposing the deal while, he said, continuing to fund Russia through energy trade.
Criticism and legal concerns
European criticism of the deal was reported, and the law is described as aiming to restrict Russian energy earnings. The articles do not provide a detailed response from European officials.
- Proposed total supply
- Nearly five million tonnes of diesel
- Shipment schedule
- More than 300,000 tonnes initially; 500,000 tonnes in November; one million tonnes thereafter; and a further three million tonnes subject to the condition of Russian diesel refineries
- US temporary licence
- Allows purchases of Russian diesel until April 7, 2027
- Russian export policy
- Russia immediately eased its diesel export ban
- Law
- Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, signed September 18
- Tariff provisions
- Section 112 provides for duties of up to 500% on Russian imports; Section 113 provides for duties of up to 100% on goods from certain major buyers of Russian crude oil or natural gas
- Deadlines and diesel distinction
- Both cited deadlines fall on October 18; Section 113 counts crude oil and natural gas purchases, not refined products such as diesel