Trump lifts sanctions on Russian diesel after deal with Putin

The United States has temporarily lifted sanctions on Russian diesel after President Donald Trump said Russia had agreed to supply fuel to world markets to bring down soaring prices, a move Ukraine called a “gift” to Moscow.

Trump said on social media that he had a “highly successful” call with President Vladimir Putin, in which they agreed that Russia would immediately supply more than 300,000 metric tons of diesel, about 2.25 million barrels, to US and global markets, The Express Tribune reported, citing Reuters.

He said Russia would supply another 500,000 tons in November and a further 1 million tons “immediately thereafter”, with more to follow depending on the state of its refineries, which have been damaged by Ukrainian attacks. The US Treasury issued a licence allowing imports of Russian diesel until April 7.

Why diesel matters

Diesel, used in farming, trucking and home heating, is a big driver of inflation. Its price is up 70 per cent since the US and Israel launched the war with Iran on February 28:

• average US diesel prices reached $6.28 a gallon on Thursday, according to the AAA motorists’ group
• US diesel futures fell almost 5pc after the deal, to $4.64 a gallon
• the US itself exports about 1.5 million barrels of diesel a day

“Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority,” Trump said. High fuel prices are a political risk for his Republicans ahead of the November 3 congressional elections.

‘Gifts to Putin’

Ukrainian President Volodymyr Zelenskiy called the deal, announced while a Ukrainian delegation was in the US for peace talks, a “weak decision on the part of strong partners”. “Gifts to Putin will not bring peace or any benefit to the civilized world,” he wrote on X.

Republican Representative Don Bacon said it was time to use sanctions “to squeeze Putin’s war machine, not reward a dictator”. The US imposed sanctions on Russian oil companies in October 2025, and the diesel exports could bring Moscow billions of dollars.

Putin’s envoy Kirill Dmitriev praised US-Russia cooperation after the call.

Analysts unimpressed

“I cannot overstate how much of a nothing burger this is,” said oil market researcher Rory Johnston, noting that Russia normally exports far more diesel when its refineries are not under attack. “It’s clearly not a fix, but another stream to aid a very tight diesel market,” said Jim Mitchell of Wood Mackenzie.

Trump on Iran: ‘failing badly’

Trump also kept the option of military action against Iran open. Asked why any response might wait until after the midterms, he said: “We may. We will see.” He claimed Iran was “failing badly”, with “no navy” and “no air force”. A day earlier he had said no attack was planned before the elections.

Why it matters for Pakistan

The global fuel squeeze from the Iran and Ukraine wars feeds into prices at home, where petrol and diesel are now revised daily.

This article draws on reporting by The Express Tribune and Reuters.