US lifts sanctions on Russian diesel sales until April 7, 2027, after Trump-Putin call

On Friday, the US Department of Treasury lifted sanctions on the sale of Russian diesel, allowing transactions related to the commodity until April 7, 2027. This decision came shortly after a call between US President Donald Trump and Russian President Vladimir Putin, where they agreed to supply diesel fuel to American and global markets.

According to the Treasury Department, all transactions prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, including the sale, delivery, offloading, or importation of Russian diesel fuel into the United States, are authorized through April 7, 2027. Trump stated that Russia would provide more than 300,000 tons of diesel initially, followed by 500,000 tons in November and one million tons shortly thereafter.

The total amount would be 3 million tons once Russia's refineries are functioning again, contingent on the state of the refineries, as reported by Trump on his social media platform Truth Social.

The global surge in diesel prices can be attributed to Russia's attack on Ukrainian refineries and the subsequent Houthi militia attacks on Saudi Arabian refineries, which severely disrupted fuel supplies. Trump is under political pressure to address fuel price issues as the November midterm elections approach.