Trump lifts US sanctions on Russian diesel exports amid price surge

On Friday, US President Donald Trump announced that Russia has consented to deliver substantial quantities of diesel fuel to international markets after a conversation with Russian President Vladimir Putin. This development unfolds as President Trump grapples with mounting domestic political pressure to alleviate escalating diesel prices, resulting from supply shortages triggered by the Iran conflict and Russian attacks on Ukrainian refineries ahead of the November mid-term elections.

In a social media update, Trump disclosed that Russia will promptly supply over 300,000 tonnes of diesel to the US and global markets, followed by 500,000 tonnes in November, and an additional 1 million tonnes "without delay" after that. Trump further stated that "depending on the condition of their diesel refineries," Russia would deliver 3 million tonnes of diesel fuel "within a short period of time."

The Treasury Department's Office of Foreign Assets Control issued a correspondent general license enabling the sale of Russian-origin diesel fuel until midnight on April 7, 2027. The license does not permit any withdrawals from accounts held by Russia's central bank, national wealth fund, or finance ministry at US financial institutions.

Ukrainian President Volodymyr Zelenskyy swiftly denounced the move, asserting that allowing Russia to trade its petroleum products "is an investment in war that needs to end, not continue."