Russia-US diesel deal delivers results? Lavrov claims prices have already fallen

Russian Foreign Minister Sergei Lavrov has stated that an agreement allowing Russia to resume diesel exports to the United States and international markets is already in effect and has contributed to lower diesel prices. In a Moscow daily Kommersant article, Lavrov emphasized the agreement as a vital aspect of energy security and denied using Russia's economy as a political tool against adversaries.

Since 2022, Russia has supplied Europe with energy resources worth $320 billion. The deal, announced by US President Donald Trump on October 9, permits Russia to provide 300,000 metric tonnes of diesel to the US immediately, followed by 500,000 tonnes in November and an additional 1 million tonnes shortly after. US sanctions on Russian fuel were temporarily lifted to enable these exports.

Although Lavrov did not provide figures to prove the price reduction, US diesel futures have dropped by about 11% since the announcement. However, diesel prices at US pumps were at a record high during the November 3 midterm elections. The arrangement faces uncertainties regarding the delivery of Russian fuel to the US, with sanctioned tankers changing their routes, and port operators advised to reject shipments due to legal concerns.

Despite this, the US Treasury Department maintains compliance with relevant laws. Meanwhile, Russian Deputy Foreign Minister Alexander Pankin suggested the diesel deal could help restore business and other ties between Russia and the US.