President Donald Trump said on Friday that Russia has agreed to supply diesel to global markets to help bring down fuel prices, and his administration temporarily eased the US sanctions on Russian fuel that were designed to cut Moscow's revenue from its war in Ukraine. The US Treasury issued a licence allowing imports of Russian diesel until April 7.
Trump said that after a call with President Vladimir Putin, Russia would immediately supply more than 300,000 metric tons of diesel, equal to about 2.25 million barrels, to US and global markets. He said a further 500,000 tons would follow in November and another 1 million tons after that, with more depending on the condition of Russian refineries that have been damaged by Ukrainian attacks.
The timing is political as well as economic. Diesel, used for farming, home heating and trucking, is up 70% since the US and Israel launched the war with Iran on February 28, and the national average reached $6.28 a gallon on Thursday, according to AAA. Congressional elections are due on November 3. US diesel futures fell almost 5% after the announcement, to $4.64 a gallon.
The deal drew immediate criticism. Ukraine's President Volodymyr Zelenskiy called it a weak decision by strong partners, and Republican Representative Don Bacon argued for tightening sanctions rather than lifting them. The US first sanctioned Russian oil companies in October 2025.
Analysts were sceptical that the volumes would make a lasting difference. Rory Johnston of CommodityContext.com noted that Russia usually exports far more diesel when its refineries are not under attack, while Wood Mackenzie's Jim Mitchell described it as another stream for a very tight market rather than a fix.
Industry sources also said Trump is expected to issue a directive in the coming days asking officials to find ways to control diesel prices, potentially including use of the Defense Production Act to expand fuel output.
What to watch: whether the first cargoes arrive, whether the licence is extended beyond April 7, and how Europe and Ukraine respond.
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