Bessent says there was no sanctions relief for Russia after U.S. diesel deal

Recent developments have seen the US administration defend its decision to waive sanctions on Russian diesel, as the relationship between Washington and Ukraine becomes increasingly strained. President Donald Trump, in an executive order, waived key provisions of a recent sanctions package against Russia, stating that such a waiver was in the national interest of the US.

The order, signed two days before the law's implementation deadline, came a week after Trump lifted sanctions on Russian diesel, a move that drew criticism from Europe and his own Republican party.

Treasury Secretary Scott Bessent explained that the administration invoked the law's 60-day pause "so we can see what's going on," emphasizing that only the diesel embargo had been lifted. The diesel deal involved Russia sending 300,000 tonnes of diesel to US and global markets immediately, with another 500,000 tonnes in November and 1 million tonnes "immediately thereafter."

Ukrainian President Volodymyr Zelenskyy condemned the move, stating it would support Russia's war efforts. Kremlin officials confirmed that Russian diesel had started reaching global markets following the agreement with Trump.

Energy Secretary Chris Wright dismissed the backlash, stating that the waiver is not an economic lifeline for Russia and dismisses it as an incentive for Russia to reduce conflict with Ukraine and allow energy to flow to world markets. The US administration aims to lower diesel prices, which have surged past $6 a gallon, before the midterm elections. Wright argued that this move, despite short-term political pain, is a form of leadership, as Trump aims to bring peace to the world and reduce energy prices.

However, President Zelenskyy called the diesel deal "dangerous" and argued that it does not significantly impact US energy prices. He also attributed the recent energy price shock to the prolonged closure of the Strait of Hormuz. Zelenskyy further accused the US of responsible for a slowdown in US-provided Starlink internet for Ukraine, which the administration denied.

Both Zelenskyy and Treasury Secretary Bessent emphasized the need for a negotiated settlement to end the war, with the US continuing to support Ukraine through intelligence, Starlink services, and allowing NATO to buy and resell arms to Ukraine.