Trump strikes deal with Putin to supply Russian diesel to U.S. and global markets — SkimNews
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- Trump said Russia will supply more than 4 million tons of diesel to the global market under a Friday phone-call deal with Putin, starting with 300,000+ tons immediately
- Russia will deliver 500,000 tons in November, 1 million tons immediately after, and another 3 million tons contingent on refinery conditions
- The Treasury Department temporarily waived sanctions on Russian diesel through April 2027 via a general license issued Friday
- Diesel prices have surged globally as Ukraine's strikes on Russian refineries and attacks by Iran and Houthi allies on Middle East refineries constrained supply, forcing Moscow to ban diesel exports
- Trump is under mounting political pressure to cut fuel costs ahead of November midterms, with competitive races in Iowa where farmers feel the diesel pinch
- Trump considered a diesel export ban last month but backed off after the oil industry warned it would raise gasoline prices
- Trump's executive order allowing truckers to use tax-exempt offroad diesel on highways only defers the tax obligation, leaving truckers uncertain about future liability
Why it matters: U.S. consumers and truckers gain temporary diesel relief, but the Treasury's sanctions waiver through April 2027 channels revenue to Russia while global capacity remains constrained by the wars in Ukraine and the Middle East. The offroad-diesel order defers rather than eliminates the tax, meaning truckers may eventually owe the difference.
Ask SkimNews
