Trump: Russia to Supply 300,000 Tons of Diesel to US — SkimNews
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- Trump announced Russia will immediately supply 300,000+ metric tons of diesel to U.S. and global markets following what he called a "highly successful" call with Putin, positioning it as a pre-November 3 midterm push to lower fuel costs.
- Russia committed to additional tranches — 500,000 tons in November and 1 million tons "immediately thereafter," with further volumes dependent on the condition of refineries damaged by Ukrainian strikes.
- Analysts dismissed the deal as a "nothing burger," noting 300,000 tons equals about 2.25 million barrels — a fraction of U.S. diesel consumption of roughly 1.5 million barrels per day.
- Diesel prices hit a record $6.28/gallon on Thursday per AAA, up 70% since the Feb. 28 U.S.-Israel war with Iran; futures dropped 4.8% to $4.64/gallon after the announcement.
- The U.S. Treasury issued a general license Friday allowing Russian diesel imports until April 7 — a reversal of the sanctions on Russian energy companies imposed after the 2022 invasion of Ukraine.
- Zelensky condemned the deal on X, warning that "gifts to Putin will not bring peace" and that Russia would "repay the diesel with further terror and perfidy."
- Trump plans a separate directive instructing officials to invoke the Cold War-era Defense Production Act to expand domestic refining and bypass state and local regulations that block energy production.
Why it matters: The 300,000-ton delivery amounts to roughly one-sixth of a single day of U.S. diesel consumption, meaning the deal Trump is selling to farmers, ranchers, and truckers ahead of the midterms is unlikely to move the $6.28-per-gallon pump price — the futures market's 4.8% drop signals traders agree. More consequentially, the Treasury's general license reopens a sanctioned Russian energy channel while a parallel directive expands wartime emergency powers to boost domestic refining.
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