Russian diesel waiver angers Kyiv as US eases sanctions

Russian diesel will return to world markets under a deal US President Donald Trump struck with Vladimir Putin, and Ukraine has reacted with open anger.

Trump announced the arrangement on Friday after a phone call with the Russian leader. In a social media post, he said a first batch of 300,000 tonnes would ship straight away. Another 500,000 tonnes will follow in November, and then a further 1 million tonnes.

After that, Trump said, Russia would ship 3 million tonnes more “within a short period”. However, that last tranche depends on the state of Russian refineries, which Ukrainian drones have struck repeatedly this year.

Soon after, the Treasury Department put out a temporary licence clearing the way for those fuel sales. As a result, the waiver lifts sanctions on the exports until April, though Washington kept other Russian assets, such as funds in American banks, frozen.

Zelensky calls Russian diesel deal a gift to Putin

Ukrainian President Volodymyr Zelensky condemned the move within hours. “Gifts to Putin will not bring peace or any benefit to the civilized world,” he wrote on social media.

He also warned that Moscow would pay back the fuel with more terror. In his view, Russian fuel sales amount to an investment in a war that should end, not drag on.

Later, Zelensky described the deal as “a weak decision” and said Putin was seeking “backroom deals” to buy time. Still, he said Kyiv counted on fair American support and a strong US conversation with Moscow, “not a weak one.”

Meanwhile, Zelensky defended Ukraine’s strikes on Russian refineries, which Trump has blamed for rising fuel prices. He said Ukraine would not set those plants “on fire” if Moscow spared Ukrainian energy infrastructure.

In Moscow, the Kremlin welcomed the talks. Putin said Russia confirmed its “willingness to supply oil and petroleum products” to the US and global markets, but he gave no volumes. Kirill Dmitriev, an envoy for Putin, said energy cooperation between the two countries “will benefit the world.”

Fuel prices and the midterms

The deal comes as Trump faces growing pressure over fuel costs before the November 3 midterm elections. Since the Iran war began in February, global energy prices have surged, and diesel has climbed sharply in the US.

Republicans also face tight races in conservative areas such as Iowa, where farmers feel the pinch of costly diesel. Trump said lower prices for farmers, ranchers and truckers were his “Greatest Priority.”

For its part, Russia has suffered two waves of severe fuel shortages this year because of Ukrainian drone attacks on its refineries. The International Energy Agency estimated that Russian diesel output has dropped by close to 30%.

The announcement also marks a sharp turn for Washington. Only last month, Trump signed a sweeping sanctions law that aimed to squeeze the Russian energy economy that funds the war.

Analysts doubt the impact

Analysts, however, questioned whether Moscow can deliver such Russian diesel volumes and whether American drivers will notice. Tim Armitage, an investment strategist at Quilter Cheviot, called the figures “relatively small”.

By his estimate, the first tranche equals about 2.25 million barrels, while the US uses around 3.8 million barrels of diesel every day. In addition, he said the step looked like “a slightly desperate move” to curb inflation before the vote.

Diesel futures dipped after the news of the Russian diesel deal. Even so, the average US diesel price stayed above $6 a gallon, close to the record set in late September.

In Europe, the UK government said its stance “could not be clearer” and that it would keep backing Ukraine. A spokesperson added that the UK would maintain pressure on Moscow through its toughest ever sanctions regime.

Meanwhile, the White House did not say who would pay for the Russian diesel or when the first cargoes would arrive. It also gave no answer on what Moscow would receive in return.