The United States has temporarily opened the way for imports of Russian diesel in an attempt to limit the rise in fuel prices before the midterm elections in November. President Donald Trump announced that he had agreed with Russian President Vladimir Putin to immediately deliver more than 300,000 tons of diesel for the American and global markets.
According to Trump, another 500,000 tons should be delivered in November, followed by 1 million tons, and subsequently by about 3 million more tons. Thus, the total potential volume reaches approximately 4.8 million tons. According to the Associated Press, the initial shipment is part of an attempt by the White House to limit pressure on American consumers before the November 3 election.
The license is temporary and does not remove all restrictions
The Office of Foreign Assets Control of the US Treasury Department has issued a general license that allows certain transactions in diesel of Russian origin until April 7, 2027. The document covers the sale, delivery, unloading and import of the fuel, including on US territory.
The measure represents a change in Washington's policy since the beginning of Russia's invasion of Ukraine. However, it does not mean that all sanctions against Russia have been lifted. Restrictions on some Russian financial transactions remain in place, while European and British bans on Russian oil imports remain unchanged.
Critics: Volumes won't bring down prices
The plan has sparked bipartisan opposition in the Senate. Susan Collins, Lisa Murkowski, Tom Tillis, John Curtis, Jeanne Shaheen and Richard Blumenthal have urged the administration to immediately reverse the decision.
The United States should not provide Putin with a financial lifeline while Russia continues to kill Ukrainian civiliansAccording to experts cited by the Associated Press, the first 300,000 tons are too small a quantity to have a tangible effect on the American market. The supplies could affect international prices, but they won't solve the processing capacity shortage and limited supplies.
Pressure on American consumers remains high. Data for October showed an average diesel price of about $6.29 per gallon, while gasoline is about $4.35. Expensive diesel fuel increases the cost of transporting goods, agricultural equipment and industrial transport.
Energy truce faces new blows
In parallel with the announcement of the diesel deal, Trump said that Russia and Ukraine had agreed to immediately end attacks on energy facilities. The US president warned Kiev not to attack Russian refineries, saying: „You can do whatever you want to Russia, but don't touch the refineries, because this is a global problem“.
Ukrainian President Volodymyr Zelensky said that Kiev had not received details of such an agreement and that Russian attacks were continuing. After Trump's statement, a strike on a thermal power plant in Kharkiv was reported, as well as attacks on energy facilities in the Kiev region.
Zelensky is demanding a mutual cessation of attacks, with Russia first stopping attacks on the Ukrainian energy system. Meanwhile, the International Energy Agency reports that Russian diesel production has fallen by nearly 30% due to damage to refineries and restrictions on exports. This also calls into question Moscow's ability to fulfill promised deliveries without additional pressure on its domestic market.
Sources: money.bg, apnews.com