Trump Authorizes Russian Diesel Sales to Ease Global Fuel Prices

US President Donald Trump announced a deal with Russian President Vladimir Putin on October 9, 2026, to increase diesel supplies to global markets as surging fuel costs pressure consumers and businesses. The agreement accompanies temporary US sanctions relief authorizing Russian-origin diesel sales, including imports into the United States, through April 7, 2027.

Trump said Russia would initially deliver more than 300,000 tons of diesel, followed by 500,000 tons in November and another 1 million tons immediately afterward. A further 3 million tons could follow, depending on the condition of Russian refineries, according to Trump's announcement on Truth Social.

The US Treasury Department issued a temporary general license on Friday to facilitate the shipments. The authorization permits the sale, delivery, offloading, and importation of Russian-origin diesel until 12:01 a.m. Eastern Daylight Time on April 7, 2027, according to a document published on the department's website.

The Treasury Department described the measure as an immediate step to restore access to Russian diesel in international markets.

"Today, at President Trump's direction, the Office of Foreign Assets Control (OFAC) is immediately issuing a temporary general license to allow the supply of Russian diesel to the global market," the Treasury Department said on X.

The move comes amid an exceptional increase in fuel costs. Diesel prices have climbed almost 70% since the Iran war began in February, according to NBC News, while economists have warned that higher energy costs could intensify inflation across the global economy.

Attacks on Russian energy infrastructure by Ukraine have further disrupted supplies. Moscow imposed a diesel export ban in July following Ukrainian strikes on its refineries and extended the restrictions through the end of October, according to NBC News. Attacks involving Iran and its Houthi allies on refineries in the Middle East have also constrained fuel availability, CNBC reported.

The immediate market response was more pronounced in European diesel trading than in crude oil. European-traded diesel futures fell 4% after Trump's announcement but remained 135% higher than at the start of 2026, NBC News reported. Brent crude traded near $104 per barrel, down 0.3% on the day.

The agreement also comes as Trump faces domestic political pressure to address rising fuel costs ahead of the November midterm elections. Farmers in states including Iowa, where Republicans face competitive races, have been affected by higher diesel expenses, according to CNBC.

Trump previously eased certain sanctions on Russia in an effort to slow rising oil prices, but the measure did little to reverse the upward trend, NBC News reported. The earlier decision drew criticism from European allies and Ukrainian President Volodymyr Zelenskyy.

German Chancellor Friedrich Merz opposed the earlier sanctions relief.

"We think that's wrong," said Friedrich Merz, Chancellor of Germany.

Zelenskyy also criticized the earlier decision, arguing that lifting restrictions would provide additional resources for Russia's war effort. The latest authorization allows Russian diesel shipments to proceed under the temporary license while the broader conflict and disruptions to energy infrastructure continue.