U.S. President Donald Trump has announced a deal to obtain diesel from Russia, a stunning reversal of years of American policy. He said R
U.S. President Donald Trump has announced a deal to obtain diesel from Russia, a stunning reversal of years of American policy.
He said Russia will supply more than 300,000 tons immediately, another 500,000 tons in November, and 1 million tons soon after, with a further 3 million tons to follow within a short period.
Mr Trump did not address sanctions or Russia’s war, saying only that lower prices for farmers, ranchers and truckers were his greatest priority.
The announcement came barely a month after he signed a sweeping Russia sanctions law meant to squeeze the energy revenues that fund Moscow’s war against Ukraine.
The reaction was swift. Critics said the move showed that Mr Trump cannot be trusted when it comes to Russia, and the sanctions law is named after Lindsey Graham, a Trump ally and prominent Russia hawk.
The law also directs the president to impose tariffs of up to 100% on the top five importers of Russian oil or natural gas, so critics say the diesel deal sits uneasily with Washington’s own stated policy.
Shortly after the announcement, the Treasury Department issued a temporary license allowing Russian diesel to be supplied to the global market. Russian presidential envoy Kirill Dmitriev welcomed the step, saying Russia-US cooperation on diesel and energy would benefit the world.
Many questions remain unanswered. The White House did not immediately say who would pay for the diesel or when the fuel would become available.
Diesel futures dipped on the news, but the timing is politically sensitive, with the midterm elections approaching and fuel costs weighing on voters. Russia, once a major diesel exporter, has banned exports since July as Ukrainian attacks on its refineries strained domestic supply.
Whether Mr Trump can ease prices at home without deepening the divide with his own party over Russia is likely to be tested in the coming weeks.
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