Russia will supply at least 4.8 million tons of diesel fuel to the US and world markets, US President Donald Trump said after a telephone conversation with Russian President Vladimir Putin.
According to him, the first shipment will be for over 300,000 tons and will be delivered “immediately”. Trump indicated another 500,000 tons in November and 1,000,000 tons immediately after that. Additionally, Russia would deliver 3,000,000 tons in a short period of time, depending on the condition of its refineries.
“Lower prices for Americans, especially our farmers, ranchers and truck drivers, are my top priority“, said Donald Trump.The American president linked the announcement of the deliveries to the need to lower diesel prices. According to the Associated Press, the average price in the United States has reached $6.23 per gallon, after a record $6.52 on September 22. High prices are putting pressure on agricultural producers, the transportation sector and businesses where fuel is a major expense.
Details of the deal are missing
The price of the fuel, buyers, payment method, routes and exact delivery dates have not been announced yet. It is also unclear how the import of Russian diesel will be organized in the United States, which has not imported Russian oil and natural gas since 2022.
The Associated Press reported that the US Treasury Department has issued a temporary license allowing the supply of Russian diesel to the world market. This removes at least part of the regulatory obstacle to the announced plan, but it does not provide information on whether the fuel will be delivered directly to American ports or through intermediaries.
At the same time, the market is already expecting additional quantities of fuel. The G-7 countries plan to release 100 million barrels of oil and petroleum products, with the initial emphasis on diesel. The decision is related to the record increase in fuel prices and supply disruptions.
The EFE agency pointed out that the pressure on prices also comes from the war in Iran, restrictions on transport routes and damage to refineries. Against this backdrop, Trump's announced Russian quantities may increase supply, but the actual effect on prices will depend on whether and how quickly the deliveries will be made.
So far, only the US president's statement and the issuance of a temporary license by the US Treasury Department have been confirmed. Public details of trade agreements, specific companies, and delivery schedules have not been provided.