Trump Says Putin Will Release Millions of Tons of Russian Diesel as U.S. Waives Energy Sanctions
The Treasury Department temporarily lifted sanctions on Russia's energy sector after a Trump-Putin call, as U.S. diesel sits near a record $6.28 a gallon and Zelenskyy calls the move a sign of weakness.
President Trump said Friday that Russia will release millions of tons of diesel fuel in the coming months to ease soaring global fuel prices, a deal he announced after a phone call with Russian President Vladimir Putin. The Treasury Department said the same day that it would temporarily waive sanctions on Russia's energy sector so the fuel can reach the global market.
Trump laid out the schedule in a post on Truth Social. According to the president, Putin agreed to release 300,000 tons of diesel immediately, followed by 500,000 tons in November and 1 million tons in December. Trump said Russia would later deliver another 3 million tons on a shorter timeline, depending on the condition of its diesel refineries.
The Kremlin confirmed the call and said Russia is ready to supply oil and petroleum products to American and global markets. Putin, it said, expressed confidence that the supplies would benefit the world economy. Per the Kremlin's account, the two leaders discussed Ukraine, Iran and bilateral relations, and agreed to stay in contact and strengthen cooperation among their administrations and security services.
Ukrainian President Volodymyr Zelenskyy objected sharply. He described the easing of sanctions as a sign of weakness and argued that letting Russia sell petroleum products would fund a war that should be ending. He called for reciprocal de-escalation and warned that Russia would respond with more attacks.
The decision reverses course on restrictions placed on Russia's economy after its full-scale invasion of Ukraine in 2022. Only last month, Trump signed a bill meant to make it harder for Russia to profit from oil and gas exports, including steep tariffs on the largest buyers of Russian energy.
The pressure on the president is plain at the pump. AAA puts the national average for diesel at $6.28 a gallon, up from $5.94 a month ago and $3.68 a year ago. Diesel first topped $6 just before the Labor Day weekend, and it set a record of $6.53 a gallon on Sept. 22. Diesel powers trucking, farming and construction, so higher costs ripple into the price of nearly everything, including groceries.
Trump had teased a "big announcement" on diesel during a Columbus Day event Friday, praising Energy Secretary Chris Wright and predicting that prices would "come tumbling" down. Earlier in the week he signed an executive order allowing red-dyed diesel on highways. That fuel is exempt from the 24.4-cent-per-gallon federal tax that applies to regular diesel. G7 nations are also set to release 100 million barrels of oil and diesel.
The shortage is tied to the war with Iran. Trump claimed Thursday that the United States has "total control" of the Strait of Hormuz, where American forces escort millions of barrels of crude oil each night. Iran has continued to attack some vessels there, including one on Friday. Trump credited his Iran policy with preventing an Iranian nuclear weapon and predicted diesel prices would fall "in record numbers."
Whether the Russian barrels arrive fast enough to move prices before the Nov. 3 midterms is an open question. The first 300,000 tons are a small slice of the market, and the larger volumes depend on Russian refineries and on the sanctions waiver holding.
