Trump Announces Russian Diesel Deal as Zelensky Calls It a “Gift to Putin”

Trump Announces Russian Diesel Deal as Zelensky Calls It a “Gift to Putin”

US President Donald Trump has announced an arrangement to bring Russian diesel into the American market, drawing sharp criticism from Ukrainian President Volodymyr Zelensky, who described it as a gift to Russian President Vladimir Putin.

Zelensky said the deal amounted to “an investment for the war” that “must end, not drag on”, and argued that Russia would repay the fuel with “further terror” against Ukraine.

What Trump said about the diesel supply

In a post on Truth Social, Trump said Putin had agreed to release 300,000 tonnes of diesel immediately “to the American and global marketplace”. A further 500,000 tonnes would follow in November, he said, with additional millions of tonnes to come afterwards.

Trump added that another three million tonnes of Russian diesel would be delivered “within a short period”, depending on the condition of Russian refineries, many of which have been targeted by Ukrainian attacks.

Shortly after the announcement, the US Treasury formally issued a temporary licence allowing Russian diesel to enter the market. Reports indicate that sanctions on Russian diesel exports will be suspended until 7 April as part of the arrangement, although other Russian assets, including those held in American banks, remain frozen.

The BBC said it had asked the White House what Russia would receive from the United States in return. No answer was included in the information available.

Putin and the Kremlin respond

Putin said he had spoken to Trump on Friday about the global energy situation. In a statement, he said Russia was willing to supply oil and petroleum products to the US and to global markets, though he did not specify any quantities. Russia introduced a ban on diesel exports earlier this year.

Kirill Dmitriev, an envoy for Putin, welcomed the deal on social media, saying that Russia-US co-operation on diesel and energy would benefit the world.

Zelensky defends strikes on refineries

Zelensky said Ukraine expected fair support from America in defending its people, along with “strong” rather than “weak” messaging from Washington towards Moscow.

He also defended Ukraine’s attacks on Russian oil refineries, saying they were a response to Russia’s years-long campaign against Ukraine’s energy sector. “Ukraine would not set Russian oil refineries on fire if Russia had not destroyed our energy infrastructure,” he said.

Russia has experienced two waves of severe fuel shortages as a result of Ukrainian drone strikes on its refineries. According to the International Energy Agency, Russian diesel production is estimated to have fallen by nearly 30%. Trump has expressed unhappiness with the attacks and blamed them for rising fuel prices.

UK says its position is unchanged

A UK government spokesperson said Britain’s position “could not be clearer”. The spokesperson said the government would keep working with international partners to ensure Ukraine has the military and financial support it needs, and would maintain pressure on Russia through what it called the toughest sanctions regime it has ever imposed.

“Russia could end this war today,” the spokesperson added, saying the UK remained committed to supporting Ukraine for as long as necessary and to working towards a durable peace.

Analysts question the impact on prices

Analysts have raised doubts about whether Russia can supply the volumes Trump described and how far the deal would ease prices for American consumers.

Tim Armitage, an investment strategist at Quilter Cheviot, said the figures Trump cited were “relatively small”. He noted that the first tranche of about 2.25 million barrels compares with daily US consumption of around 3.8 million barrels, so it would not make “any material difference to pump prices” in the United States.

Armitage acknowledged that two more releases were expected, but described the move as appearing to be “slightly desperate” on Trump’s part, an attempt to lower inflation ahead of the midterm elections.

Fuel prices and the political backdrop

The announcement is the latest in a series of efforts by Trump to bring down fuel costs. He has spent months dealing with the political fallout of the Iran war, which began in February, and its impact on global energy prices. Petrol and especially diesel prices in the US have risen sharply in recent months, affecting his standing with voters and contributing to wider inflation.

According to AAA, the average US diesel price is currently $6.28 per gallon (£4.74), down from a record of $6.53 set at the end of September. Brent crude remains above $103 a barrel, compared with about $73 before the Iran war.

Earlier this week, Trump said he was “thinking about” suspending the federal tax on gasoline. He also announced that red dye diesel would be allowed on US highways without the federal tax being applied. He has also pressured G7 nations into releasing 100 million barrels of oil and diesel from stockpiles, and has previously backed calls for a ban on US diesel exports.

A shift in US policy

The announced deal marks a notable reversal. The US Congress recently passed legislation, signed by the president, authorising new American sanctions and tariffs on countries that import Russian oil and gas.

The agreement could also expose Trump to criticism from European allies and pro-Ukraine politicians in the US, who may argue that Washington is now helping to fund Moscow’s war effort. Trump’s Truth Social posts often provide incomplete information, and the details of how Russia would supply the fuel to global markets, and what it might receive in return, remain unclear.

With the midterm elections set to determine whether Republicans keep control of Congress, Trump continues to look for ways to ease the pressure that high fuel prices are placing on his party.