What is the diesel deal between Putin and Trump?
USO•Trump said Russia would supply more than 300,000 metric tons of diesel immediately, followed by 500,000 tons in November and 1 million tons afterward. The US lifted sanctions on Russian diesel exports as part of efforts to ease prices, while a ceasefire on energy infrastructure was announced.
1. Supply and export hurdles
The initial 300,000 metric tons is less than a day's supply for the US transport sector, which uses about 2.94 million barrels of diesel per day. Russia could face hurdles exporting the fuel, including tanker availability and damage to refineries from Ukrainian attacks. Moscow said it had partially lifted its diesel export ban with immediate effect.
2. Economic and political response
Putin said Ukrainian strikes on refineries cost Russia's economy 1% of GDP, about $26.6 billion. Exports of 300,000 tons of diesel would bring in roughly $400 million, with only a small portion going to Russia's state budget. Ukraine's President Volodymyr Zelenskiy said the deal would embolden Moscow's attacks and cost more lives; US lawmakers also criticised the move.
3. Other supply factors
China's approved October exports of diesel, gasoline and jet fuel total about 3.7 million metric tons, down sharply from a year earlier and below September's more than 4 million tons. The article also cites reduced Gulf supply linked to the Iran war and fuel releases coordinated by the International Energy Agency.
