Trump lifts US sanctions on Russian diesel exports amid price surge

US President Donald Trump announced on Friday that Russia has agreed to supply a significant amount of diesel fuel to the global market, following a call with President Vladimir Putin. This decision comes as Trump faces domestic political pressure to reduce rising diesel prices, which have surged due to supply issues stemming from the conflict in Ukraine and Russian attacks on refineries in that country.

The deal provides for more than 300,000 tonnes of diesel fuel to be delivered to the US and global markets immediately, with additional shipments of 500,000 and 1 million tonnes to follow in November and shortly after that, respectively. Trump stated that Russia's diesel refineries' condition would allow for the delivery of 3 million tonnes of fuel within a relatively short period.

The Treasury Department's Office of Foreign Assets Control released a correspondent general license permitting the sale of Russian-origin diesel fuel through April 7, 2027. However, the license does not authorize any debit to accounts of Russia's central bank, national wealth fund, or finance ministry on US financial institution books.

The move immediately drew criticism from Ukrainian President Volodymyr Zelenskyy, who denounced it as an investment in the ongoing war that should instead be ended.