US to get diesel from Russia

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

Trump said on social media yesterday 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 tonnes of diesel, followed by an additional 500,000 tonnes in November and one million tonnes “immediately thereafter.” Russia will deliver another 3 million tonnes “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.

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.”

The law he signed last month is aimed at sanctions on Russian officials, banks and a shadow fleet of tankers and bans all new US investment in Russia and the handling of sovereign debt

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

The US 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 US Energy Information Administration.

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.

Gas prices around the world have surged as the war in Iran upends the energy sector. The national average for a gallon of diesel was US$6.23 on Friday, according to AAA, after hitting a record US$6.52 on September 22.