Join our FREE personalized newsletter for news, trends, and insights that matter to everyone in America

Newsletter
New

Trump Lifts Sanctions On Russian Diesel, Suggests Us May Buy Amid Surging Fuel Prices

Card image cap


The Trump administration moved Friday to temporarily lift sanctions on Russian diesel as President Donald Trump said Moscow had agreed to release large quantities of the fuel and suggested the U.S. could be a buyer.

The surprise announcement is the Trump administration’s latest effort in its struggle to bring the record diesel prices — caused by the ongoing war against Iran as well as Ukrainian attacks against Russian refineries — under control ahead of the midterm elections. It also could signal weakening of Trump’s support for Ukraine in its fight against Russia’s invasion, Democratic lawmakers said.

In a post on Truth Social, Trump said he had just “concluded a highly successful discussion” with Russian President Vladimir Putin, in which Putin agreed to supply hundreds of thousands of tons of diesel fuel “to the American and Global Marketplace.” Russia would “immediately supply” the fuel “based on the condition of their Diesel Refineries,” Trump added.

“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!” Trump wrote on Truth Social.

Immediately after Trump’s post, the Treasury Department issued a general license allowing for the “sale, delivery, offloading, or importation, including importation into the United States” of Russian diesel through April 2027.

Ukrainian President Volodymyr Zelenskyy accused Trumpof using peace talks in Florida between U.S. and Ukrainian negotiators as a “smokescreen” while the U.S. struck a deal with Russia.

"It plays into Russia’s hands – allowing it to kill more, wage war for longer, have even less respect for America, and inflict even greater losses and damage on the world," he said on X.

The Trump administration has wrestled for weeks with how to handle record diesel prices that have angered farmers and truckers and driven up the price of goods across the economy. Diesel prices averaged $6.27 a gallon on Friday, down 10 cents from the week before but still $2.60 higher than they were last year, according to the American Automobile Association.

Trump last week ruled out an export ban on diesel, instead securing a pledge by European allies to tap their diesel stockpiles, though those governments have since said the announcement largely amounted to preexisting commitments. Trump has previously criticized European allies for continuing to buy Russian oil that was helping to fund its continued campaign against Ukraine. Some European countries insisted the U.S. uphold its sanctions against Russia as a condition for the release, according to minutes from last Friday’s EU ambassadors meeting.

Trump’s diesel deal with Russia comes less than a month after he signed the massive Russia sanctions legislation dedicated to the memory of Sen. Lindsey Grahamand that allows for tariffs against buyers of Russian oil. The news that Trump would effectively ignore the legislation and possibly buy fuel from Russia directly raised alarm amid some Democrats.

Rep. Don Beyer (D-Va.), who opposed the legislation, called Friday’s move “infuriating."

“This is what we warned anyone who would listen: Trump isn't the slightest bit trustworthy when it comes to Russia,” Beyer wrote on X. “Giving him expanded tariff powers in hopes he would use them to help Ukraine was a mistake.”

Nebraska Republican Rep. Don Bacon, who has repeatedly disagreed with the administration on foreign policy and is not running for re-election, said the president's deference to Putin was "embarrassing."

“The president has a moral blindness towards Putin," he said. "Money shouldn’t trump morality.”

Russia has restricted diesel exports in recent months as Ukraine has accelerated its attacks on its refineries, contributing to the global shortage of the fuel. It is unclear how Moscow will supply the quantities of the fuel promised by Trump with a large chunk of its refineries out of commission.

Energy experts quickly expressed skepticism that the announcement would make a dent in diesel prices.

Gregory Brew, a senior analyst at Eurasia Group, said Moscow’s immediate commitment amounts to less than 2% of the total U.S. output of 3.6 million barrels per day.

“Beyond the fact that these numbers aren't very big, this would indicate Russia is willing to end its ban on refined products exports...which I have a hard time seeing without a pause in Ukrainian attacks,” Brew wrote on X.

The Kremlin has yet to comment publicly on Trump's announcement. But Putin's special presidential representative for investment and economic cooperation, Kirill Dmitriev, celebrated the move within minutes of Trump's announcement Friday.

"Russia-US energy and economic cooperation will continue and benefit global markets and the world," Dmitriev posted on social media, adding emojis of the Russian and U.S. flags shaking hands.

Trump has long called for an end to the fighting, most recently blaming Ukraine for its attacks on Russia’s energy infrastructure, which, along with the U.S. attacks against Iran, is one of the reasons diesel fuel prices have climbed to record highs. He said in September that the attacks, which have disabled nearly half of Russia’s refining capacity, were “hurting the world” by causing fuel shortages and high diesel prices.

"Will the U.S. now pressure Ukraine to unilaterally cease attacks on Russian refineries? Logically it must," said Daniel Fried, a former U.S. State Department coordinator for sanctions policy. "The damage from Trump's Iran war keeps growing."

Trump’s announcement Friday comes as Steve Witkoff and Jared Kushner were expected to meet with Ukrainian representatives in Miami to discuss ideas for a new proposal to end the war in Ukraine. Earlier this week, Secretary of State Marco Rubio called the war a “stalemate” and said a military solution would not likely end the conflict.

Kyiv and its allies on Capitol Hill had pushed the legislation, arguing it would give the White House the economic tools it needed to force the Kremlin to the negotiating table. But the bill’s critics had warned that Trump has a history of going soft on Moscow and could decide not to use the powers afforded to him against Russia.

Mia McCarthy contributed reporting.