USA pauses sanctions on Russian diesel – Treasury

The US Department of the Treasury has temporarily authorized shipments of Russian diesel fuel to the global market. According to Investing.com, President Donald Trump said Russian President Vladimir Putin agreed to supply over 300,000 tons of diesel initially, followed by 500,000 tons in November and another 1 million tons shortly after. Russia would also deliver an additional 3 million tons within a short period, subject to refinery conditions, totaling roughly 36 million barrels.

The temporary license, issued by the US Treasury Department's Office of Foreign Assets Control, allows Russian diesel sales on global markets, suspending certain sanctions until April 7, 2027. This move comes as US diesel prices have reached an average of $6.28 per gallon, compared to $3.68 a year earlier, according to AAA. The International Energy Agency estimates a global diesel shortage of approximately 1.6 million barrels per day.

Ukrainian President Volodymyr Zelensky criticized the sanctions relief, warning that allowing Russia to increase petroleum exports would provide Moscow with additional resources to continue its war. The agreement marks a shift in Washington's approach toward Moscow. According to FXStreet, the first 300,000 tons of diesel is equivalent to about 2.2 million barrels, a little more than half a day of US demand for distillate fuels.

Brief written by urgent.news from Interfax-Ukraine, Investing.com, Winnipeg Free Press, FXStreet — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.