Trump announces Russian diesel deal amid sanctions reversal
SCMP · 4 SOURCESabout 2 hours ago2 MIN
Summary
US President Donald Trump said on Friday that he had reached an agreement with Russian President Vladimir Putin for Russia to supply large volumes of diesel to the American and global market. Trump said the first tranche would exceed 300,000 tons, followed by 500,000 tons in November, 1 million tons immediately after that, and another 3 million tons within a short period, depending on refinery conditions. The announcement marked a sharp turn after Trump signed a broad Russia sanctions law last month aimed at Russia’s energy economy and other sectors linked to the war in Ukraine. Soon after Trump’s post, the US Treasury issued a temporary general licence allowing Russian-origin diesel to be sold, delivered, offloaded and imported to the global market.
Key Points
- Trump said he struck the diesel deal in a Friday phone call with Putin that had been expected to cover a suspected plague case in Russia
- According to the Kremlin, the call gave considerable attention to prospects for resolving the Ukraine crisis and also covered Iran and bilateral relations.
- Trump said Russia would immediately supply over 300,000 tons of diesel, then 500,000 tons in November and 1 million tons immediately thereafter.
- Trump added that Russia would deliver another 3 million tons within a short period, depending on the condition of Russian diesel refineries.
- Russian Deputy Prime Minister Alexander Novak said Moscow would lift diesel export restrictions ahead of schedule and was ready to supply extra volumes
Why It Matters
For Hong Kong readers, the move points to possible knock-on effects in global fuel pricing and shipping costs if additional Russian diesel reaches wider markets under a temporary US licence. It also underscores how quickly US policy toward Russia can shift, even after Washington enacted new sanctions aimed at constraining Moscow’s energy revenues tied to the Ukraine war.