President Donald Trump announced a deal with Russian President Vladimir Putin to supply millions of tons of global diesel, triggering an immediate U.S. Treasury waiver and sharp condemnation from Ukrainian President Volodymyr Zelenskyy amid ongoing energy and conflict pressures.
President Donald Trump announced a deal with Russian President Vladimir Putin allowing Moscow to supply diesel instantly to international markets. The agreement prompted the U.S. Treasury Department to issue a temporary license exempting the Russian fuel shipments from sanctions until April 7, 2027. Following discussions, the Kremlin confirmed that the Russian side reaffirmed its readiness to provide oil and petroleum products to the American market and global markets generally.
According to statements by the U.S. Treasury Department on Friday, the Office of Foreign Assets Control issued a temporary general license following instructions from President Trump. The arrangement, identified as General License No. 135, permits transactions involving the sale, delivery, discharge, and import of Russian diesel into the United States and international markets through April 7, 2027, while leaving assets belonging to the Russian Central Bank, National Wealth Fund, or Ministry of Finance blocked from deductions at American financial institutions.
The announcement followed a productive conversation between Donald Trump and Vladimir Putin regarding the global energy situation. U.S. reports indicated that average diesel prices had climbed to roughly $6.28 per gallon after reaching a record $6.52 on September 22. Meanwhile, Russian Deputy Prime Minister Alexander Novak stated that Russia was prepared to start shipping extra volumes of diesel to the United States and other countries in October, with exports scheduled to rise in November and December as refineries resume operations following maintenance.
Diesel Prices Drop as Putin Offers Oil Supplies
Wholesale diesel prices in New York dropped 4.5% to $4.67 per gallon following the announcement. Putin confirmed that Russia is ready to supply oil and petroleum products to the United States and global markets.
Energy analysts questioned whether Russian refineries can fulfill the promised volume. Kirill Dmitriev, Putin’s special envoy, praised the agreement on social media, asserting that energy cooperation between Moscow and Washington benefits the world. Energy experts cited by Bloomberg, such as Rebecca Babin of CIBC Private Wealth, observed that the incoming supplies would initially move energy headlines and provide minor relief, though they do not constitute a permanent solution to supply constraints.
Zelenskyy Calls Energy Agreement Unfair and Disgraceful
The announcement created immediate political friction with Kyiv and opposition lawmakers in Washington. Ukrainian President Volodymyr Zelenskyy criticized the agreement during an interview with Axios, calling the move unfair and damaging, and posting on social media that gifts to Putin will not bring peace.
This is certainly not fair, and it is certainly disgraceful on the part of our partners, and it is in my view a weak decision.
Zelenskyy added that Ukraine would stop targeting Russian refineries if Moscow stopped destroying Ukrainian power infrastructure. According to an American official cited by Axios, Trump pursued the diesel deal after Zelenskyy ignored approximately six U.S. requests to halt the refinery attacks, which the administration blamed for driving up domestic fuel costs ahead of the upcoming midterm elections.
Senate Democratic Leader Chuck Schumer, Senator Jeanne Shaheen, and Senator Elizabeth Warren issued a joint statement condemning the agreement. The Democratic senators wrote that the president must end his conflict with Iran rather than finance Russia’s war machine, noting the deal directly contradicts a sanctions bill Trump signed into law just a month prior.
