Trump announces deal for Russia to supply 300,000 tonnes of diesel to US market
On 9 October 2026, Donald Trump announced that Russia would immediately supply 300,000 tonnes of diesel fuel to American and world markets under a deal with Vladimir Putin reached during a phone call. On the same day, the US Treasury's Office of Foreign Assets Control (OFAC) issued General License 135, authorizing specified transactions involving Russian diesel through 7 April 2027. The deal was justified by Trump as a way to lower diesel prices that had risen because of a war with Iran ahead of the 3 November midterm elections; critics from both parties argued it contradicts a 2022 law banning Russian energy imports and the sanctions Trump himself signed in September.
Key points
- 9 October: Trump announces deal with Putin for 300,000 tonnes of Russian diesel to US and world markets.
- Same day: OFAC issues General License 135, permitting transactions in Russian diesel through 7 April 2027.
- Russia committed to a further 500,000 tonnes in November, 1 million tonnes later, and potentially another 3 million tonnes depending on the state of Russian refineries.
- First shipment is approximately 2.25 million barrels; the US exports around 1.5 million barrels of diesel per day.
- As of 2 October, US diesel inventories stood at 105.1 million barrels, 12% below the five-year seasonal average; Midwest down 9% since late August, New England down 39% year-on-year.
- Diesel prices in early October ranged from about $5.74/gallon in Texas to roughly $6.60 in Michigan and Alaska.
- Critics from both parties, including Senators Murkowski, Collins, Shaheen, Tillis, Schumer and Blumenthal, said the deal contradicts the 2022 Russian energy import ban and September sanctions.
Why it matters
The deal lifts a key US barrier on Russian energy imports less than a month before the 3 November midterm elections, and Trump framed it as a way to ease diesel prices that had risen because of a war with Iran. It potentially channels between roughly $300 million and $7.2 billion to Russia, which is waging war on Ukraine, depending on whether only the initial shipment or all announced volumes are realised. Members of both parties publicly criticized the move as contradicting a 2022 law banning Russian energy imports and the sanctions Trump signed in September, and a bipartisan effort to block it was announced in Congress.
What happened
On 9 October 2026, Donald Trump announced that under a deal reached with Vladimir Putin during a phone call, Russia would immediately supply 300,000 tonnes of diesel fuel to American and world markets. The first shipment amounts to approximately 2.25 million barrels, a relatively small volume compared with US diesel exports of around 1.5 million barrels per day. Under the announced deal, Russia committed to an additional 500,000 tonnes in November, then 1 million tonnes, and potentially a further 3 million tonnes depending on the condition of Russian refineries; at a hypothetical export price of $1,000–1,500 per tonne, the first shipment alone could generate $300–450 million in gross revenue for Russia, with all announced volumes put at $4.8–7.2 billion. On the same day, the US Treasury's Office of Foreign Assets Control issued General License 135, authorizing certain transactions involving Russian diesel fuel until 7 April 2027. Reuters reported that in September Putin's special representative Kirill Dmitriev had already been asking Washington for such licenses for large Russian oil companies. Trump justified lifting the sanctions by pointing to US diesel prices that had risen sharply because of a war with Iran. Critics from both parties argued the move contradicts a 2022 law banning Russian energy imports and the sanctions Trump signed in September; Senators Murkowski, Collins, Shaheen, Tillis, Schumer and Blumenthal were among those speaking against it, and Representative Brian Fitzpatrick announced a bipartisan bill to block Russian oil purchases. After the announcement, diesel futures fell by nearly 5%.
How Ukrainian sources describe it
Ukrainian-language coverage frames the deal as a betrayal of Ukraine by Trump and asks what Russia gains and what it costs Ukraine's war effort. The Ukrainian pieces foreground the potential hundreds of millions to billions of dollars in revenue flowing to Russia, the role of Kirill Dmitriev in lobbying Washington for the licenses in advance, and the view that the deal effectively rewards aggression at a moment when Ukraine is striking Russian refineries. Former Republican congressman Adam Kinzinger used the moment to call on Ukraine to intensify its strikes on Russian oil infrastructure.
How international sources describe it
The German-language piece frames the deal as Trump 'betraying' Ukraine and asks what Europe can do in response. The Arabic-language piece frames it as a 'democracy-for-diesel' exchange, with Friedman accusing Trump of abandoning Ukraine in order to please Putin.
Where reporting differs
Analysts at Wood Mackenzie and Commodity Context doubt that the announced volumes will produce a sustained drop in US diesel prices, while Trump justified lifting sanctions by claiming the deal will lower fuel prices that had risen sharply ahead of the midterms.
Background
In September 2022 Congress passed a law banning imports of Russian energy, and in September Trump signed further sanctions against Russia; the announced deal appears to conflict with both, according to critics. US diesel and distillate inventories stood at 105.1 million barrels as of 2 October, 12% below the five-year seasonal average, with sharper deficits in the Midwest, where inventories fell 9% from late August to 26.2 million barrels, and in New England, where they stood at 2.46 million barrels, 39% below a year earlier, while the Gulf Coast held a surplus of 43.9 million barrels. Diesel prices in early October ranged from about $5.74 per gallon in Texas to roughly $6.60 in Michigan and Alaska. Congressional elections are scheduled for 3 November, with all 435 House seats and 35 Senate seats up for election, several of them in competitive races in the Midwest and New England.