Trump Announces Russian Diesel Deal and Sanctions Waiver as Prices Near Records

President Donald Trump said Friday that Russia had agreed to supply millions of tons of diesel fuel to world markets over the coming months, and the Treasury Department moved to temporarily waive sanctions on Russia’s energy sector to allow it, a sharp turn in policy aimed at the fuel price spike that has dogged Republicans heading into the midterm elections.

In a Truth Social post after a phone call with Vladimir Putin, Trump said Russia would release more than 300,000 tons of diesel immediately, another 500,000 tons in November and 1 million tons after that, with a further 3 million tons to follow depending on the condition of Russian refineries. The Kremlin confirmed the call, which it said lasted about an hour and a half, and said Russia was ready to supply oil and petroleum products to American and global markets. Its readout said the leaders also discussed Ukraine and the war with Iran, CBS News and Al Jazeera reported.

Ukrainian President Volodymyr Zelenskyy condemned the move, saying any easing of sanctions on Russia is a sign of weakness and that allowing Moscow to sell fuel amounts to investing in a war that should be ended. The decision reverses years of tightening pressure on Russia’s energy revenue since its 2022 invasion of Ukraine; only last month Trump signed a bill imposing steep tariffs on the biggest buyers of Russian energy, CBS noted.

The need for relief is clear. Diesel averaged about $6.28 a gallon on Thursday, according to AAA, roughly 70 percent higher than when the United States and Israel went to war with Iran in February. CBS News reported that the price was $3.68 a year ago, first crossed $6 just before Labor Day and hit a record of $6.53 on September 22. Because diesel powers trucks, tractors and construction equipment, it feeds into the price of nearly everything, groceries included.

The administration’s earlier measures have had limited effect, according to Reuters reporting published by NBC News. A Group of Seven agreement to release 100 million barrels of oil and fuel appears to largely cover what remained of an emergency release from March rather than new supply, though a White House official disputed that and said the barrels had been front-loaded with diesel. An executive order letting trucks use tax-exempt red-dyed diesel on highways through year-end has drawn little uptake, as retailers worry about tax liability and fines across state lines, and the 24.4-cent federal tax break is small next to $6 fuel.

Analysts quoted by Reuters said the core problem is a tight global market for refined fuel caused by the wars in the Middle East and Ukraine, and that short-term steps may bring a few weeks of relief at most. Prices have eased slightly in the past week.

The White House says it is focused on easing temporary disruptions while pursuing longer-term energy policy, and Trump predicted prices would come down fast. Critics, including Ukraine’s government, argue that buying relief from Moscow trades a short-term political benefit for leverage the West will want back.