Russia says diesel contracts with US under negotiation

Russian Deputy Prime Minister Alexander Novak said on Wednesday that Russian and American officials are working out contracts for Russian diesel shipments. The talks follow a deal President Donald Trump announced after a phone call with Vladimir Putin. Allies in Europe and members of Congress from both parties have pushed back on it.

"Talks on making contracts are now underway between the Russian Energy Ministry and the U.S. Department of Energy. An instrument will be found there that will make it possible to support supplies," Novak said at the Russian Energy Week forum, according to China's state news agency Xinhua. He told TASS that Russia is lifting its diesel export restrictions earlier than planned. He added that signing a contract and loading a tanker will take more time before the first cargo leaves for the United States.africanews+1

The deal

Trump said on Truth Social on Friday that Russia would immediately supply more than 300,000 tons of diesel. That would be followed by 500,000 tons in November, 1 million tons "immediately thereafter" and then 3 million more tons. The Treasury Department then issued a general license that suspends sanctions on Russian diesel until April 2027.thebell+1

A U.S. official told Axios that Trump made the deal after Ukrainian President Volodymyr Zelensky ignored several U.S. requests to stop attacking Russian oil refineries. Washington blames those strikes for pushing up American fuel prices. Zelensky called the deal "not fair and not honest".axios

Novak has said Russia could export 3 million to 3.5 million tons a month by the end of the year. Analysts doubt that figure because roughly 40% to 50% of Russia's refining capacity is offline. They also expect little near-term relief for U.S. diesel prices, which are near record highs, The New York Times reported.aljazeera+2

Europe and Congress push back

European officials were stunned by the announcement, according to The New York Times. Energy experts there estimated the deal could send about \$4 billion into Russia's economy. German Chancellor Friedrich Merz said copying the deal was "out of the question" for Europe. "Russia will only negotiate seriously under pressure," he said. EU foreign ministers meeting in Luxembourg added a record 1,600 names to the bloc's sanctions list.nytimes+1

POLITICO reported that officials at a Warsaw security forum complained bitterly about the decision in private, with one EU official calling it "Oval Office Part 2." Most EU leaders, however, have avoided criticizing Trump directly. A senior EU official told European Pravda that EU leaders are expected to express "regret" over the deal in their conclusions from the summit set for Thursday and Friday.politico+1

In Washington, a dozen senators, six of them Republicans, asked Trump on Tuesday to rescind the deal. Their letter came days before the administration must decide on new sanctions against Moscow. Lawmakers argue the agreement may violate a 2022 law that bars imports of Russian energy. "We should be tightening sanctions further, not undercutting them," said Republican Sen. Jerry Moran.reuters+1