Trump announces deal with Putin to release Russian diesel

The US president announced a deal with Russia to put large quantities of Russian diesel onto the global market, saying Moscow would release 300,000 tonnes immediately, 500,000 tonnes in November and another 1 million tonnes thereafter. The US Treasury promptly issued a temporary license to allow the imports. A Russian envoy hailed the cooperation, while Ukraine's president condemned it as a "gift to Putin" that would fund and prolong the war, warning Russia would repay diesel with further terror. Diesel prices in the US have doubled since the Iran war began in February, with an average of about $6.28 a gallon (down slightly from a record $6.53), and Russia itself has faced severe refinery damage from Ukrainian drone strikes that have cut its diesel output by roughly 30%, according to the International Energy Agency.

The move marks a sharp reversal from recent US legislation that authorized new sanctions and tariffs on countries importing Russian oil and gas, and it has drawn criticism from European allies and pro‑Ukraine politicians. Key details remain unclear: how Russia will physically supply the fuel, what, if any, payment or concessions it will receive, and how much this will lower global prices given Brent crude remains above $103 a barrel. The announcement is part of a broader push by the president to ease fuel costs ahead of midterm elections, alongside proposals to suspend the federal gas tax, allow taxed red‑dyed diesel on highways, and coordination with the G7 to release strategic reserves.