Donald Trump announced a deal to import Russian diesel into the United States, suspending Treasury sanctions on those exports until April 7. Trump said Putin agreed to release 300,000 tonnes immediately, followed by 500,000 tonnes in November and a million more after that, with three million additional tonnes to follow pending refinery conditions.
Ukraine's President Volodymyr Zelensky condemned the agreement, calling it "a gift to Putin" and "an investment in a war that must be ended, not prolonged." He cited overnight Russian strikes on Zaporizhzhia and Kyiv as Russia expressing "its thanks" for the deal. European allies backed Zelensky's position. EU foreign affairs chief Kaja Kallas said suspending sanctions "provides Moscow with more revenues to wage war." A UK government spokesperson stated Britain would maintain "the toughest sanctions regime ever imposed" on Russia.
Putin confirmed Russia's willingness to supply oil and petroleum products to US and global markets but did not specify amounts in his statement. An envoy for Putin, Kirill Dmitriev, welcomed the arrangement on social media.
Investment strategist Tim Armitage questioned the deal's practical impact. He calculated the first tranche at approximately 2.25 million barrels, while daily US consumption runs around 3.8 million barrels. "So it won't make a material difference to pump prices in the US," Armitage said. He characterized it as "a slightly desperate move by President Trump to try to lower inflation ahead of the midterms."
The average diesel price in the US stands at $6.28 per gallon, down from a record high of $6.53 in September, according to AAA. Global Brent crude remains above $103 a barrel, compared to roughly $73 before Russia's full-scale invasion of Ukraine began in February.
Analysts have questioned whether Russia can deliver the promised volumes. Russia experienced severe fuel shortages this year after Ukrainian drone strikes on its oil refineries reduced diesel production by nearly 30 percent, according to International Energy Agency estimates. Trump has blamed those Ukrainian strikes for rising fuel prices. Zelensky defended them as responses to "Russia's years-long campaign of terror against Ukraine's energy sector."
The deal marks a reversal, as Congress recently enacted legislation signed by Trump authorizing new sanctions and tariffs on nations importing Russian oil and gas.