President Donald Trump said Friday that Russia will supply more than 4 million tons of diesel to the global market under an agreement signed during a phone call with President Vladimir Putin.
Trump said in a post on Truth Social that Russia would provide more than 300,000 tons of diesel immediately, followed by 500,000 tons in November and 1 million tons shortly thereafter. President Trump said Russia would then deliver an additional 3 million tons of diesel depending on the situation at Russian refineries.
The Treasury Department has temporarily waived sanctions on Russian diesel until April 2027 under a general permit issued Friday.
Diesel prices have soared around the world as Ukraine squeezes Russian refineries, forcing the Russian government to ban diesel exports to global markets. Iran and its Houthi allies have also attacked refineries in the Middle East, further constraining fuel supplies.
President Trump is increasing political pressure to take steps to lower fuel prices ahead of the November midterm elections. Republicans face tough elections in conservative strongholds like Iowa, where farmers are feeling the pinch from soaring diesel prices.
But the president has few options to lower prices, given that the world’s refining capacity has been destroyed by wars in Eastern Europe and the Middle East.
President Trump last month threatened to ban diesel exports, but ultimately relented as the oil industry and major corporations warned that a ban would only drive up gas prices.
The president issued an executive order earlier this week that allows truck drivers to use tax-free off-road diesel on highways without worrying about federal fines. But the order only defers tax obligations, creating confusion about whether truckers will have to pay at some point.
