2 hrs ago
Trump Announces Russian Diesel Deal as Zelenskyy Calls It Weak
Diesel is a fuel used by trucks, farms, and many businesses, and it has become expensive in the United States.
President Donald Trump said Russia would send diesel to the United States and other markets.
The US government also temporarily allowed Russian diesel imports.
Trump said more shipments could come later.
Ukraine’s president and some US lawmakers criticized the decision, saying Russia could use the money to support its war.
Oil analysts said the extra fuel may help a tight market but probably will not keep prices down for long.
US diesel futures fell after the announcement.
The administration is also looking at ways to increase fuel production in the United States.
Donald Trump said Russia would immediately supply more than 300,000 tonnes of diesel, with further shipments announced.
The US Treasury authorized Russian-origin diesel transactions through April 7, 2027, according to one article; another reports April 7 without a year.
Volodymyr Zelenskyy and lawmakers from both parties criticized the move, warning that Russian oil revenue could support Moscow’s war against Ukraine.
US diesel futures fell nearly 5% after the announcement, but analysts said the deal may not provide lasting price relief.
The administration is considering domestic production measures, including a possible directive and use of the Defense Production Act.
- Who
- US President Donald Trump announced the deal after speaking with Russian President Vladimir Putin; Ukrainian President Volodymyr Zelenskyy and US lawmakers criticized it.
- What
- Russia agreed to supply diesel, and the US Treasury temporarily authorized transactions involving Russian-origin diesel.
- Where
- The diesel is intended for US and global markets.
- When
- Trump announced the deal on Friday, October 9; the Treasury licence is reported as lasting until April 7, 2027 in one article.
- Why
- The stated aim is to increase fuel supplies and lower prices amid high US diesel costs and a tight global market.
Supporters of added fuel supply
Critics of easing restrictions
Effect on prices
Supporters of added fuel supply
Trump said the Russian supply would help bring diesel prices down for Americans, especially farmers, ranchers, and truckers.
Critics of easing restrictions
Analysts said it could add supply but would not fix the wider shortage or ensure lasting price relief.
Sanctions and Russia’s war
Supporters of added fuel supply
The administration temporarily authorized Russian diesel transactions as it sought to increase supply and address high fuel prices.
Critics of easing restrictions
Zelenskyy and US lawmakers argued that easing restrictions could give Moscow more revenue and support its war against Ukraine.
Key facts
- Initial supply announced
- More than 300,000 tonnes of diesel, described in one article as about 2.25 million barrels
- Further supply announced
- 500,000 tonnes in November and 1 million tonnes immediately thereafter; one article also reports a further 3 million tonnes within a short period
- Import authorization
- The Treasury licence permits specified transactions involving Russian-origin diesel through April 7, 2027, according to one article
- US diesel price
- AAA reported an average of $6.28 per gallon on Thursday; one article says this was up from $3.68 a year earlier
- Market reaction
- US diesel futures fell nearly 5% to $4.64 per gallon after the announcement
- Analysts’ view
- Analysts said the supply could help a tight market but was unlikely to be a lasting fix
- Domestic measures under consideration
- A possible directive on diesel prices and use of the Defense Production Act to increase domestic fuel production
Quotes
Volodymyr Zelenskyy
President of Ukraine
“Now is the time to use those sanctions to squeeze Putin’s war machine, not reward a dictator by putting more money in his hands while he continues targeting and killing Ukrainian civilians.”
telegraphindia.com
financialexpress.com
“Additionally, based on the condition of their diesel refineries, Russia will then deliver, within a short period of time, 3,000,000 tonnes of diesel fuel.”
telegraphindia.com
Sources
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