ECONOMY. The US Treasury Department has announced a sanctions waiver on the Russian fuel trade amid skyrocketing global prices.

The move allows the sale, delivery, offloading, and import of Russian diesel, including to the United States, until at least April 7, 2027.

The announcement followed President Donald Trump’s announcement of a major agreement with Moscow, after a Friday phone call with Russian President Vladimir Putin.

Europe in Shock

‘Russia will immediately supply over 300,000 Tons of Diesel Fuel to the American and Global Marketplace, another 500,000 Tons during November, and 1,000,000 Tons immediately thereafter.

Zelensky is Fuming

Trump disclosed that Moscow could provide up to 3,000,000 tons of additional diesel within a short period of time depending on the state of its refineries, which have recently been under constant threat of long-range Ukrainian strikes.

Russia is ready to supply oil and petroleum products to the US and global markets, the Kremlin said in a statement following the two presidents’ phone calls.

Moscow is sure that it would have a positive effect on the entire global economy, the statement added.

Immediate Relief

Deputy Prime Minister Aleksandr Novak also confirmed that Moscow would be lifting diesel export restrictions ahead of schedule. The process will be started ‘immediately,’ the official told TASS.

Russia Grins

‘Russia welcomes US steps aimed at stabilizing the global energy market and gradually restoring normal energy trade, and stands ready to coordinate future actions to create a more predictable and healthy market,’ the deputy prime minister stated.

The Russian government had previously extended a ban on the export of diesel and ship fuel, as well as gas oils until October 31 to stabilise the domestic market, which had been suffering from increased seasonal demand linked to harvesting time.

Sanctions Kaput

Under the existing restrictions, fuel producers have been barred from exporting fuel until the end of October and non-producers were banned from doing so until January 31, 2027. A total ban on gasoline exports is in place until the end of January as well.

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Trump’s War the Faultline

The development comes as the global markets are still reeling from the supply disruptions linked to the US-Israeli war with Iran.

Russell Hardy, the CEO of Vitol, one of the world’s largest oil trading companies, warned that the market had burned through much of the stock that previously helped absorb disruptions.

There aren’t any more inventories to drain in the West,’ he stated on Wednesday.

Last week, G7 countries agreed to release 100 million barrels of crude and refined products from emergency stocks, beginning with diesel to curb the soaring prices as the Trump administration demanded Europe do more to deal with the issue.

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