Trump announces Russian diesel deal weeks after signing sweeping sanctions law

WASHINGTON (AP) — President Donald Trump said that he has struck a deal to obtain diesel from Russia, a stunning reversal of years of U.S. pressure on Moscow over its war with Ukraine and an attempt to address high fuel prices ahead of the U.S. midterm elections.

Trump said on social media on Friday that he struck the deal with Russian President Vladimir Putin in a phone call in which he was expected to discuss a suspected case of plague in Russia. Instead, Trump announced that Russia will immediately supply more than 300,000 tons of diesel, followed by an additional 500,000 tons in November and 1 million tons “immediately thereafter.” Russia will deliver another 3 million tons “within a short period of time” after that, he wrote.

Trump’s shocking announcement comes after he signed a sweeping Russia sanctions law last month that aimed at clamping down on Russia’s energy economy, among other areas, that fuel its war against Ukraine.

Ukrainian President Volodymyr Zelenskyy reacted sharply in a social media post, saying that the Russian leader was trying to strike “backroom deals” to buy time in the war.

“Gifts to Putin will not bring peace or any benefit to the civilized world,” he said.

Trump’s move casts doubt on the likelihood of the White House imposing sanctions on Russia this month, given that a bipartisan law passed by Congress directs the administration to target the top importers of Russian oil and gas.

Trump, in his announcement, did not address the sanctions or Russia’s war but said, “Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority.”

Washington and Moscow offer few details on deal

The White House did not immediately respond to questions about who was paying for the diesel from Russia and when the fuel being supplied under the agreement would become available. It also did not clarify whether subsequent supplies of Russian diesel set to come next month would be supplied prior to Election Day on Nov. 3.

Gas prices globally have surged as the war in Iran upends the energy sector. While diesel futures prices dipped on Friday’s news, the national average price per gallon of diesel in the U.S. was still $6.23, according to AAA, after hitting a record $6.52 on Sept. 22.

A statement from Putin, released by the Kremlin on Friday, said that during his call with his U.S. counterpart, he and Trump dedicated “significant attention to the prospects of resolving the Ukrainian crisis” and also discussed “the situation around Iran and various aspects of bilateral relations.”

Russia “confirmed its readiness to supply oil and oil products to the American and global markets,” Putin said. “I am confident that this will have a positive impact on the entire global economy.”

The two leaders agreed to continue contacts, Putin said in the statement.

Trump and Putin’s deal draws immediate backlash

Zelenskyy, in his lengthy post online reacting to the deal, said Russia would repay it “with further terror and perfidy.” He cast it as an investment in the war, allowing it to be prolonged.

“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,” he said.

Rep. Don Beyer, the senior House Democrat on the Joint Economic Committee, called Trump’s announcement “infuriating.”

“This is what we warned anyone who would listen: Trump isn’t the slightest bit trustworthy when it comes to Russia,” Beyer said in a statement on X. “Giving him expanded tariff powers in hopes he would use them to help Ukraine was a mistake. Now he’s lifting sanctions on Russian fossil fuels.”

The law Trump signed last month envisions sanctions on Russian officials, banks and a shadow fleet of tankers and bans all new U.S. investment in Russia and the handling of sovereign debt.

It also directed Trump to impose tariffs of up to 100% on the top five importers of Russian oil or natural gas, with an exception for countries that import less than 15% of Russia’s natural gas exports and have taken significant steps to reduce those imports.

The U.S. has not imported Russian oil or gas since 2022, when the Biden administration banned them because of Moscow’s invasion of Ukraine, according to the U.S. Energy Information Administration.

Treasury Department moves to ease diesel sanctions for six months

Shortly after Trump made the announcement, the Treasury Department said it was immediately issuing a temporary license allowing Russian diesel to be supplied to the global market.

This is the latest in several licenses the U.S. Treasury has issued regarding Russian fuel shipments since the start of the Iran war earlier this year. But it is the first such license to ease sanctions on diesel for a period lasting longer than the standard 30-day window since the start of the Ukraine war.

The new so-called general license means U.S. sanctions will not apply until April 2027 on deliveries of Russian diesel that has been loaded onto tankers as of Friday. The department extended similar easing of sanctions in March and April even though Treasury Secretary Scott Bessent had ruled out such a move earlier in the year.

The extensions continue to underscore how the fallout from the Iran war has boosted Moscow’s ability to profit from its energy exports, which had been restrained by the U.S. and other allies since the invasion of Ukraine.

Russia, once a major exporter of diesel, has banned exports since July as it has struggled to meet demand inside the country because of Ukraine’s repeated attacks on Russian oil refineries. The International Energy Agency says Russian diesel output has fallen by about 30%.

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Associated Press writers Will Weissert and Konstantin Toropin in Washington and Farnoush Amiri in New York contributed to this report.