Donald Trump has loosened U.S. sanctions on Russian diesel after reaching a supply deal with Vladimir Putin, hoping Moscow can cool America’s $6 fuel prices. Farms and truck drivers see their costs climbing just before tough midterm elections. Russia continues its war in Ukraine.
In this deal, which was announced on Friday via Truth Social, around 4 million tons of diesel are concerned. Russia will send out 300,000 tons right away, then 500,000 in November, followed by 1 million tons not long thereafter. There may be as many as 3 million more tons after that, depending on what Russian refineries can produce.
Trump turns to Russian fuel as refinery damage drives prices higher
The Treasury Department issued a license Friday allowing Russian diesel transactions through April 2027. The waiver bypasses restrictions on Moscow’s energy earnings. Washington is penalizing Russia for the war while helping it sell fuel.
Strikes by Ukraine have hampered the operations of refining plants in Russia, compelling them to reduce their exports. Attacks from Iran and the Houthi rebels have also affected the processing plants in the Middle East region.
As processing plants in two regions have been destroyed, it is impossible to make up for the losses through any executive order. The uses of diesel extend beyond being a fuel for automobiles.
Last month, Trump told Ukraine to quit attacking Russian diesel infrastructure because the resulting shortage was “hurting the world”. His proposed U.S. diesel export ban collapsed after businesses warned it could increase gasoline prices.
This week’s executive order lets truckers use tax-exempt off-road diesel on public highways without immediate federal punishment. But the tax is postponed, not canceled. Drivers still don’t know whether Washington will eventually come collecting.
Zelenskyy attacks the deal as Trump faces election pressure
Volodymyr Zelenskyy blasted the decision, saying that:
“Gifts to Putin will not bring peace or any benefit to the civilized world. Russia will ‘repay’ the diesel with further terror and perfidy. Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged.”
According to Zelenskyy, the request is for mutual de-escalation and not relief without concessions. The Russians should be made to demonstrate some restraint before they are given any economic advantage, and not vice versa.
The deal is in conflict with the U.S. policy of pushing for an energy ceasefire, which would see Russia and Ukraine halt all attacks on key energy sites.
Ukraine appears open to the idea, especially with winter drawing near and their electricity infrastructure being more prone to attack. However, there is no publicized agreement that would obligate either party to stop attacking each other.
The Kremlin says Trump and Putin spoke for roughly 90 minutes as Ukrainian negotiators arrived in Miami for talks with American officials.
Their conversation covered possible steps toward ending the Ukraine war, although Putin reportedly only promised to consider when talks might resume. They discussed wider economic projects, including fuel, and Moscow’s possible role in reaching a settlement with Iran.
There was even some diplomatic birthday wish trading, with the Kremlin claiming that Trump wished Putin happy birthday on his birthday yesterday. However, in Iowa, the farmers struggling with skyrocketing diesel costs have pressing problems.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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