Trump suspends new Russia sanctions after diesel deal

President Trump has announced a deal with Vladimir Putin for Russia to supply diesel to the United States and global markets, then moved to suspend new sanctions on Moscow that were due to take effect within days.

Trump said the agreement would see Russia immediately supply more than 300,000 tonnes of diesel. A further 500,000 tonnes would follow in November, with a million tonnes after that. He said total volumes could approach five million tonnes. In a social media post, he said the aim was to bring down fuel prices for Americans, especially farmers, truckers and ranchers. He thanked Putin publicly and called the deal a big deal. Diesel futures on US markets fell about 4% after the announcement. The US Treasury issued a six-month waiver on sanctions covering Russian diesel, and the Kremlin acknowledged the deal, saying Russia was ready to supply oil to the US. Putin said he expected a positive impact on the global economy.

The move came amid record US diesel prices. Diesel had risen to about $6.20 a gallon, compared with $3.25 earlier in the year. Prices were pushed up by the war with Iran and disruption around the Strait of Hormuz, and by Ukrainian strikes on Russian refineries. With midterm elections less than a month away, Trump was under intense pressure to ease household costs. Critics said the amount was small. The first release amounted to about 2.2 million barrels, less than a day of US diesel consumption. Industry analysts said it would cover only about 7% of the gap between diesel production and consumption.

Ukraine reacted with fury. President Volodymyr Zelensky called the deal a gift to Putin, a weak decision and an investment in Russia's war. He said Russia would repay the diesel with further terror and perfidy, and that every extra billion dollars would be spent on weapons, drones, missiles and mercenaries. Ukrainian officials and civilians said the United States was prioritising cheap fuel and midterm politics over Ukrainian lives. The deal was also condemned by Ukraine's allies. Finland and Sweden criticised it. The UK government said it did not support the decision and would keep sanctions on Russia. The UK defence secretary linked Trump's move to US domestic political pressure. European leaders saw it as a blow to Western unity.

There were also doubts about whether Russia could deliver. Russian refineries have been hit by Ukrainian drone attacks, and Moscow had restricted its own diesel exports. Experts said Russia had a surplus of diesel but shortages of regular gasoline, while others said domestic diesel shortages and damaged refineries made large exports hard. Bill Browder said the deal removed Ukraine's main military leverage by reducing the pressure on Russian oil infrastructure. Hours after the announcement, Russia attacked Ukraine's Zaporizhzhia region, killing civilians including children. Ukraine struck an oil loading terminal in Rostov-on-Don.

In the days that followed, Trump issued an executive order suspending a package of sanctions on Russia's energy and defence sectors and on senior officials including Putin. The measures had been signed into law only a month earlier and were due to come into force on Sunday. Trump said the waiver was in the US national interest and would remain until further notice. Democrats accused him of capitulating to Russia. A Kremlin envoy called the suspension a historic moment. The White House did not explain how the move served US national interests. Trump also criticised Zelensky and suggested Ukraine might need a new president. The Kremlin said the two presidents spoke for 90 minutes and that Trump wished Putin a happy birthday.

The long-term effect on diesel prices remains uncertain. The UK is preparing to join a military exercise in Poland with British, Polish, French and German troops as a possible peacekeeping force if a ceasefire is reached. For now, the deal has deepened the rift between Washington and Kyiv, unsettled US allies and raised questions about whether Russian diesel can reach the market in meaningful volumes.