Weeks After Imposing Tariffs On Countries Buying Russian Oil, Trump Announces Diesel Deal With Putin

US President Donald Trump, who imposed tariffs on countries including India over their purchases of Russian oil, has announced a proposed diesel supply deal with Russian President Vladimir Putin. Under the arrangement, Russia would immediately supply more than 300,000 tonnes of diesel to American and global markets, followed by additional shipments in the coming months.

The announcement comes as the US continues to use trade measures and sanctions to pressure Russia and countries linked to its oil trade, while Trump seeks to bring down fuel prices ahead of the US midterm elections in November.

The US Treasury Department has temporarily authorised certain transactions involving Russian-origin diesel until April 7, 2027, including the sale, delivery, unloading and import of the fuel. The move comes amid a surge in global diesel prices and concerns over disrupted supplies.

Trump Announces More Than 4.8 Million Tonnes Of Diesel

In a post on his Truth Social platform, Trump said he had concluded a “highly successful” telephone conversation with Putin, during which the two leaders agreed on a series of diesel shipments.

Trump said Russia would immediately supply more than 300,000 tonnes of diesel to American and global markets. Another 500,000 tonnes would be supplied in November, followed by one million tonnes immediately thereafter.

He added that Russia would subsequently deliver another three million tonnes, depending on the condition of its refining facilities.

The quantities outlined by Trump amount to more than 4.8 million tonnes across the proposed deliveries. However, the announcement did not provide details of the commercial terms, the companies involved or the precise delivery arrangements.

Tariffs On Russian Oil Buyers, But A Diesel Deal With Putin

Trump’s proposed deal comes against the backdrop of his administration’s efforts to pressure countries and entities involved in Russian oil trade.

Washington has imposed sanctions on Russia’s energy sector following its invasion of Ukraine and has taken action against entities involved in Russian oil exports. Trump has also pursued tariffs against certain countries over their purchases of Russian oil, with India among the countries affected by US trade measures.

The decision to facilitate specified Russian diesel transactions highlights the contrast between Washington’s pressure on Russian oil buyers and its own proposed arrangement to receive Russian fuel.

The distinction between crude oil and refined petroleum products, as well as the specific terms of the applicable authorisation, is important. The temporary permission for certain diesel transactions does not amount to a complete lifting of US sanctions on Russia’s energy sector, nor does it mean every country purchasing Russian oil is automatically subject to penalties.

Trump Links Diesel Deal To Fuel Prices

Trump linked the proposed Russian diesel supplies to what he described as American control over the Strait of Hormuz, a strategically important maritime passage for international energy shipments.

“Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!” he wrote on Truth Social.

He said lowering fuel costs for American consumers, particularly farmers, ranchers and truckers, was his highest priority.

However, the extent to which the additional supplies will reduce global diesel prices will depend on the volumes delivered, existing supply arrangements, transport costs and wider market conditions.

Zelenskyy Warns Against Easing Pressure On Russia

Ukrainian President Volodymyr Zelenskyy has warned that easing sanctions without a lasting agreement could allow Russia to prolong its war against Ukraine.

He has called for stronger sanctions, continued military support for Ukraine and increased pressure on Moscow to end the conflict.

The diesel arrangement comes at a sensitive time for US relations with Russia and Ukraine, as Washington seeks to address rising energy costs while maintaining economic pressure on Moscow. The details of the proposed deal, including payment arrangements and the precise delivery schedule, remain unclear.