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US-Russia energy deal opens up diesel can of worms

US President Donald Trump's announcement that Russia will be supplying diesel to global markets has opened up a can of worms, says analysts. Washington agreed to lift sanctions on the Kremlin in a bid to bring down energy prices, especially for diesel, which is vital to many economic sectors. Analysts, however, have raised alarm bells, saying the numbers Mr Trump has touted will not add up, and…

US-Russia energy deal opens up diesel can of worms

US President Donald Trump's announcement that Russia will supply diesel to global markets has raised concerns among analysts. The deal is intended to lower energy prices, particularly for diesel, which is crucial to many economic sectors. However, analysts have questioned the numbers presented by Trump, suggesting they are unrealistic.

The deal has drawn criticism due to Russia's ongoing conflict with Ukraine and its disregard for the International Criminal Court. Ukrainian President Volodymyr Zelenskyy has expressed disapproval, comparing the deal to a "birthday present" for Russian President Vladimir Putin. Zelenskyy has warned that Russia will "repay" the diesel with more violence and wrongdoing.

Analysts at Quantum Strategy and Geonomics argue that the numbers Trump has touted are far beyond Russia's actual diesel exports and production capabilities. Russia's refining capacity has been significantly reduced due to Ukrainian strikes, and the country's diesel production has plummeted. The US Congress has shown concern over the deal, with bipartisan members questioning what is needed to end the war.

The deal has also been seen as a double standard, with the US imposing sanctions on the International Criminal Court while relaxing them for Russia.

Written by urgent.news from The National Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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