Trump strikes deal with Putin for Russian diesel

Washington: US President Donald Trump said he has struck a deal to obtain diesel from Russia, in a stunning reversal of years of American pressure on Moscow over its war with Ukraine and an attempt to address high fuel prices before the US midterm elections.

Trump said on social media on Friday that he had agreed to a deal with Russian President Vladimir Putin in a phone call in which he was expected to discuss a suspected case of plague in Russia.

Instead, Trump announced that Russia would immediately supply more than 300,000 tonnes of diesel, followed by an additional 500,000 tonnes in November and 1 million tonnes “immediately thereafter”. Russia would deliver an additional 3 million tonnes “within a short period of time” after that, Trump wrote.

Trump’s surprise announcement was in stark contrast to a sweeping Russia sanctions law he signed last month that aimed at clamping down on the oil and gas revenues that fuel Russia’s war against Ukraine.

Ukrainian President Volodymyr Zelensky called the latest agreement “a weak decision, unfortunately, a weak decision by strong partners”, according to a statement released by the Ukrainian embassy in Washington.

Trump announced the deal as his envoy Steve Witkoff and son-in-law Jared Kushner were meeting with Ukrainian officials in Miami to discuss a proposal to end the Russia-Ukraine war.

“I believe our team is simply being used as a smokescreen. And that is certainly not fair. It is certainly not how partners should treat each other,” Zelensky said.

In Sydney, Energy Minister Chris Bowen said Australia did not want Putin benefiting from the war in Iran, and would continue to do everything it could to prevent Russian oil from flowing into the country.

“This is not a policy we are implementing, not a policy we will implement, not one we need, not one we want,” Bowen told reporters on Saturday.

“Our position about the Putin regime’s immoral and illegal approach has been crystal clear. We stand with the people of Ukraine. We stand with freedom in Ukraine and the rights of Ukrainian people and the Ukrainian nation. That is the Australian government’s position. That won’t change. What other countries do is a matter for them.”

Trump’s move casts doubt on the likelihood of the White House imposing new sanctions on Russia, given that the law that passed overwhelmingly by Congress directs the administration to target countries that purchase Russian oil and gas.

The Democrats’ Senate leader, Chuck Schumer, along with senator Jeanne Shaheen, the top Democrat on the Foreign Relations Committee, and senator Elizabeth Warren, the ranking Democrat on the Banking Committee, called Trump’s announcement a betrayal of Ukraine, the European allies and American national security.

“Enough is enough,” the senators wrote. “The president must end his war with Iran instead of funding Russia’s war machine.”

Fuel prices globally have surged as the war in Iran upends the energy sector. While diesel future prices dipped on the news on Friday, the national average for a gallon of diesel in the US remained high at $US6.28, according to fuel price website AAA, after hitting a record $US6.52 on September 22.

Trump did not address the sanctions or Russia’s war but said: “Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority.”

Trump said later, as he left the White House for a campaign rally, that he was thankful for the deal. “I want to thank President Putin. To be honest with you, we have massive amounts of oil coming into our country, and it’s diesel, which is what we want. So, thank you,” Trump said. He did not answer shouted questions about the criticism from Zelensky.

The White House did not immediately respond to questions about who was paying for the Russian diesel or when it would become available.

A statement from Putin, released by the Kremlin on Friday, said during their call he and Trump dedicated “significant attention to the prospects of resolving the Ukrainian crisis” and also discussed “the situation around Iran and various aspects of bilateral relations”.

Russia “confirmed its readiness to supply oil and oil products to the American and global markets”, Putin said. “I am confident that this will have a positive impact on the entire global economy.”

The US has not imported Russian oil or gas since 2022, when the Biden administration banned the imports because of Moscow’s invasion of Ukraine, according to the US Energy Information Administration.

Shortly after Trump made the announcement on Friday, the US Treasury Department said it was immediately issuing a temporary licence allowing Russian diesel to be supplied to the global market. The licence means US sanctions will not apply until April 2027 on deliveries of Russian diesel that has been loaded onto tankers as of Friday.

The extensions underscore how the fallout from the Iran war has boosted Moscow’s ability to profit from its energy exports.

AP

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