Trump says Putin agreed to send diesel, eases sanctions

President Donald Trump said on Friday, Oct. 9, that he had reached a deal with Russian President Vladimir Putin for Russia to put millions of tons of diesel on the U.S. and world markets. The move eases U.S. energy sanctions on Moscow as diesel prices climb sharply a few weeks before the midterm elections.axios+1

"I have just concluded a highly successful discussion with President Vladimir Putin, of Russia, wherein it was agreed that Russia will immediately supply over 300,000 Tons of Diesel Fuel to the American and Global Marketplace, another 500,000 Tons during the month of November, and 1,000,000 Tons immediately thereafter," Trump wrote on Truth Social. He added that Russia would deliver "within a short period of time, 3,000,000 Tons of Diesel Fuel".bloomberg+1

A shift in sanctions policy

Axios reported that the deal includes a waiver on some U.S. energy sanctions against Russia. Politico reported that Trump lifted sanctions on Russian diesel and suggested the United States itself might buy the fuel. The Associated Press described the move as relaxing years of U.S. pressure on Moscow in an effort to fight prices before the midterms.politico+2

The announcement came as Ukrainian and European diplomats arrived in Miami for talks on ending Russia's war in Ukraine, according to Axios. Less than a month earlier, Trump had signed a Russia sanctions bill. Reuters reported that the law authorizes sanctions on Russia's energy sector and its "shadow fleet" of tankers, and it also gives the president broad power to waive those measures on national security grounds. "This is entirely discretionary," Ben Harris, a former senior Treasury official, told Reuters at the time.axios+1

Price pressure

Bloomberg reported that the administration wants to rein in rising prices for diesel, a fuel that trucking, farming and freight rely on. NBC News described the increase in prices as unprecedented. According to AFP, the cost of diesel has jumped during the war involving Iran. Trump pointed to oil leaving the Strait of Hormuz alongside the Russian supply, writing that "Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!"nbcnews+3

The White House had not said when the first shipments would arrive or how the fuel would be split between U.S. and international buyers. The Kremlin's account of the call was also not available. The question now is whether the promised volumes reach the market fast enough to bring prices down before voters head to the polls, and whether lifting restrictions on Moscow weakens the leverage Washington is using in the Ukraine peace talks.axios+1