President Donald Trump revealed on Friday that a new agreement with Russian President Vladimir Putin will allow Russia to supply millions of tons of diesel to both the United States and international markets. The announcement was made via a post on Trump’s social media platform, Truth Social.
Under the terms outlined by Trump, Moscow will immediately provide more than 300,000 tons of diesel. This initial shipment will be followed by an additional 500,000 tons scheduled for November, and another 1 million tons arriving shortly after. Trump further stated that Moscow is expected to deliver a subsequent 3 million tons, contingent upon the operational status of Russian refineries.
The deal comes at a critical time for global fuel supplies, as diesel prices have surged worldwide. Ukraine’s sustained attacks on Russian refineries have severely impacted production, leading Moscow to previously ban diesel exports to the global market. Compounding the supply constraints, Iran and its Houthi allies have also launched attacks on refineries in the Middle East.
Thirty percent of that volume is contingent on refineries working? After Ukraine’s strikes, I doubt Moscow can guarantee that stability anytime soon.
This feels like a classic transactional move. Trading energy access for geopolitical favors seems incredibly risky given the current conflict.
Diesel prices are through the roof. If this shipment actually arrives, I’ll be happily surprised. Finally some relief for truckers.
Wait, isn’t Russia still under heavy sanctions for this very reason? How does this deal actually bypass the legal restrictions?