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Trump strikes major diesel deal with Russia in bid to lower US fuel prices ahead of midterms
The move comes as part of Trump’s effort to reduce domestic energy prices ahead of the crucial midterm elections in the US.
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US President Donald Trump announced a major energy supply agreement with Russia on Friday that could see Moscow supply nearly 5 million tons of diesel fuel to global energy markets. The deal was unveiled after a phone call with Russian President Vladimir Putin and was swiftly followed by the US Treasury issuing a temporary general license allowing the purchase of Russian diesel until April 7 next year. The move comes as part of Trump’s effort to reduce domestic energy prices ahead of the crucial midterm elections in the US, in which the President’s Republican party is expected to fare poorly due to widespread concerns about high inflation and affordability.
“I have just concluded a highly successful discussion with President Vladimir Putin, of Russia, wherein it was agreed that Russia will immediately supply over 300,000 Tons of Diesel Fuel to the American and Global Marketplace, another 500,000 Tons during the month of November, and 1,000,000 Tons immediately thereafter. Additionally, based on the condition of their Diesel Refineries, Russia will then deliver, within a short period of time, 3,000,000 Tons of Diesel Fuel,” Trump said in a post on Truth Social, his social media platform, while asserting that the announcement would lead to a speedy reduction in diesel prices for American and global consumers.
It is unclear how the energy deal with Russia impacts the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which was signed into law by President Trump last month. The act was explicitly designed to cripple Russia’s energy export earnings by directing President Trump to place tariffs up to 100% on goods from the top five purchasers of Russian oil and gas in the 12-month period prior to the date the act was signed into law. India, China, Azerbaijan, Slovakia and Hungary were expected to be the five nations impacted by this legislation. This is particularly important as the legislation requires the President to place tariffs on Russian oil purchasers within 30 days, which would be October 18. To be sure, the act also gives President Trump the authority to grant national interest waivers exempting a country from the tariffs. The announcement of the US-Russia energy deal has led to some uncertainty about whether the tariffs will be levied.
September saw a considerable decrease in Russian seaborne crude oil exports to India, which dropped 59% compared to August volumes and 51% compared to September 2025, according to data from S&P Global Commodities at Sea.
Energy markets analysts expressed skepticism that the US-Russia deal will cool global energy prices.
"The US just dropped sanctions on Russian-origin diesel and in exchange Moscow just pledged the exact same pathetic volume of diesel that they're currently managing to export amidst a smouldering refinery fleet,” said oil markets researcher Rory Johnston on X.
Ukrainian President Volodymyr Zelensky also reacted with scepticism to the announcement.
“Any easing of sanctions against Russia without a clear and lasting de-escalation agreement with Russia is an obvious weakness. It plays into Russia’s hands – allowing it to kill more, wage war for longer, have even less respect for America, and inflict even greater losses and damage on the world,” Zelensky said in a post on X.
Ukrainian military strikes on Russian oil refineries in recent months have caused some disagreements between Kyiv and Washington, given American fears that disruptions to Russian energy exports will lead to a spike in global prices.
