Trump's Russia policy U-turn brings first Russian diesel to US since 2023

Three tankers carrying Russian diesel are heading towards North America under a Trump-Putin agreement. The shipments mark a sanctions reversal aimed at easing fuel prices before US midterms.The shipments follow a deal between US President Trump and Russian President Vladimir Putin to resume diesel supplies to US and global markets. (Photo: ITG)Three tankers carrying Russian diesel are heading towards North America under a new import agreement, Russian Deputy Prime Minister Alexander Novak said on Friday, marking a major shift in US energy policy as President Donald Trump seeks to rein in fuel prices ahead of crucial midterm elections.The shipments follow a deal between Trump and Russian President Vladimir Putin to resume diesel supplies to US and global markets. The first cargo, comprising 40,000 metric tonnes of diesel, is aboard a tanker headed for New York and is expected to arrive on November 7. It would be the first Russian diesel shipment to reach the United States since July 2023.Novak said Russian companies could supply 500,000 metric tonnes of diesel in October, with further shipments expected under the arrangement.“The first three fuel tankers are already on their way to the eastern coast of the Atlantic Ocean, with significant support from the RDIF (Russian Direct Investment Fund),” Novak said in a statement carried by Russian news agencies. The agreement represents a reversal of Washington's efforts to cut Moscow's energy revenues following its invasion of Ukraine in 2022. It has also drawn criticism from Kyiv, which fears the resumption of trade could help finance Russia's war.TRUMP PRIORITISES FUEL PRICES AHEAD OF MIDTERMSTrump announced the deal on October 9 after a conversation with Putin, saying Russia would supply more than 300,000 metric tonnes of diesel to the US and global markets immediately. He outlined further deliveries of 500,000 tonnes in November and one million tonnes thereafter. The US President has been under pressure to bring down soaring diesel prices before the November 3 congressional midterm elections, which will determine control of Congress. Diesel is a key fuel for trucking, agriculture and other sectors, making its cost an important economic and political issue.As part of the agreement, the Trump administration temporarily eased sanctions affecting Russian fuel supplies. The move came despite Washington's earlier efforts to isolate Moscow economically and restrict the revenues it earns from energy exports.The first shipment alone is unlikely to significantly reduce US fuel prices. The 40,000-tonne cargo amounts to around 300,000 barrels, a small fraction of the country's daily diesel consumption.US HAD THREATENED TARIFFS ON RUSSIAN OIL BUYERS, INCLUDING INDIAThe deal comes weeks after Trump signed a sanctions law that opened the way for steep tariffs on major buyers of Russian oil and gas. The legislation, known as the Graham Act, gave the US President authority to impose tariffs of up to 100 per cent on leading importers of Russian energy, potentially including countries such as India.The measure was intended to increase pressure on Moscow by making it more costly for other countries to continue buying Russian energy. India, one of the major purchasers of Russian crude since Western sanctions were imposed, could have faced pressure under such a policy.Trump's decision to suspend parts of the sanctions framework while arranging Russian diesel supplies has exposed the tension between Washington's stated goal of constraining Moscow and its immediate domestic priority of lowering fuel costs.The administration has defended the arrangement as a way to ease pressure on energy markets. Critics, however, argue that resuming purchases risks weakening the economic pressure on Russia while the war in Ukraine continues.UKRAINE QUESTIONS DEAL WITH MOSCOWThe agreement has caused concern in Ukraine, which has repeatedly urged Western governments to tighten sanctions on Russia and reduce the revenue available to fund its military campaign.Ukrainian President Volodymyr Zelenskyy criticised the move, calling it a “weak decision by strong partners”. The deal has also drawn criticism from European officials and lawmakers in both major US political parties.The timing has added to the controversy. While Washington has pressed Kyiv over attacks on Russian oil refineries, the Trump administration has moved to facilitate Russian diesel supplies to help ease prices at home.Russia, meanwhile, has begun restoring diesel exports after partially lifting its own export restrictions. Novak has said the country could return to its usual export levels of three million to 3.5 million tonnes a month by the end of the year.The latest shipments could therefore signal a broader resumption of Russian diesel exports, even as the war continues and Western governments remain divided over how to balance energy needs with pressure on Moscow.- EndsWith inputs from Reuters