WASHINGTON: US President Donald Trump has said Russia has agreed to supply more than 300,000 tonnes of diesel to the United States and international markets immediately, with additional shipments planned in the coming months to help ease soaring fuel prices.
Trump announced the agreement following what he described as a successful discussion with Russian President Vladimir Putin. In a social media post on Friday, he said Russia would initially provide more than 300,000 tonnes of diesel, followed by another 500,000 tonnes in November and a further one million tonnes thereafter. Additional supplies would depend on the condition of Russian refineries, which have sustained damage during the war in Ukraine.
The announcement comes as diesel prices in the United States approach record levels ahead of the November 3 congressional midterm elections. Diesel is a critical fuel for agriculture, freight transportation and home heating, making its price a significant factor in operating costs and broader inflation.
According to the American Automobile Association (AAA), the average US diesel price reached $6.28 per gallon on Thursday. Prices have risen sharply since the US-Israeli war with Iran began this year, despite government efforts to increase available supplies and ease pressure on consumers.
Trump said reducing fuel costs for Americans, particularly farmers, ranchers and truckers, remained a top priority for his administration.
Kirill Dmitriev, an envoy for Putin, also welcomed cooperation between Russia and the United States on diesel and energy in a post on X following the leaders’ conversation.
The proposed arrangement represents an unusual development given the sanctions imposed by Washington on Russian energy companies following Moscow’s invasion of Ukraine in February 2022. The US Treasury Department issued a general licence on Friday allowing imports of Russian diesel through April 7, 2027.
Separately, Trump is considering additional measures to curb domestic fuel prices and expand US energy production. Three industry sources said the president could issue a directive to federal department heads in the coming days, potentially through a presidential memorandum, instructing them to identify ways to overcome regulatory obstacles to energy production and increase fuel supplies.
The proposed measures could include invoking the Cold War-era Defense Production Act (DPA), which gives the president authority to support domestic manufacturing of critical materials through loans and loan guarantees and to require companies to prioritise government contracts for essential goods.
The White House has been examining how the legislation could be used to expand refining capacity as the conflict with Iran exposes the vulnerability of fuel supplies to geopolitical disruptions and sudden price increases.
During discussions with administration officials last month, refining executives reportedly argued that federal support would be better directed towards improving the efficiency of existing refineries or expanding current facilities rather than financing entirely new plants, which would require substantially greater investment and take years to build.
Trump also predicted that US gasoline prices would soon decline to between $1.85 and $1.95 per gallon, compared with the national average of approximately $4.37 per gallon on Friday, according to AAA.
The potential Russian diesel shipments and proposed domestic production measures highlight Washington’s efforts to address the fuel supply crunch. However, the actual impact on prices will depend on the timing and volume of deliveries, the operational condition of Russian refineries and the wider geopolitical situation affecting global energy markets.
By Reuters
