Trump’s Russian Oil U-Turn: US turns to Moscow for diesel

WASHINGTON: US President Donald Trump has once again adopted a contradictory stance on Russian energy purchases, with the United States set to receive Russian diesel even as Washington threatens countries, including India, with tariffs of up to 100 per cent for buying Russian oil and gas. The move comes amid soaring fuel prices in the US.

Trump announced that Russia would supply diesel to the US and global markets following a phone conversation with Russian President Vladimir Putin. On October 9, the US Treasury Department issued a temporary sanctions waiver allowing transactions involving Russian-origin diesel, including its import into the US, until April 7, 2027. The waiver applies to specified transactions and does not amount to a blanket lifting of all sanctions on Russian energy exports.

Trump said the move was intended to ease pressure on global fuel prices. The decision marks a shift in Washington’s efforts to restrict Moscow’s energy revenues over its war against Ukraine.
The US midterm elections are scheduled for November 3. Rising fuel prices have added to the economic pressure on Trump and his Republican Party ahead of the polls. The war with Iran has disrupted global energy markets, contributing to the surge in fuel prices.

Russia to supply millions of tonnes of diesel

Trump said Russia would immediately supply more than 300,000 metric tonnes of diesel to the US and global markets. He announced a further 500,000 tonnes in November, followed by one million tonnes immediately thereafter. An additional three million tonnes would be supplied within a short period, depending on the condition of Russian refineries. The announced quantities total more than 4.8 million tonnes.

However, the Kremlin confirmed Russia’s readiness to supply oil and petroleum products to the US and global markets without independently confirming the specific diesel quantities or delivery schedule announced by Trump. The actual volumes to be delivered and their impact on fuel prices remain uncertain.