The Russian diesel deal announced by President Donald Trump on Friday, Oct. 9, 2026, opens U.S. and global markets to Russian-origin diesel for the first time in years, after a phone call with Vladimir Putin. Within hours, the Treasury Department issued a license suspending key sanctions on the fuel until April 2027, drawing sharp criticism from Kyiv, European capitals and lawmakers in both parties.
Part of our World Affairs coverage — read the full guide: Russia-Ukraine War 2026 Guide.
Trump framed the move as relief at the pump less than four weeks before the Nov. 3 midterm elections. “Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority,” he wrote, according to the Associated Press, via PBS News.
What the Russian diesel deal includes
In his Truth Social post, Trump said Russia would immediately supply more than 300,000 tons of diesel, followed by 500,000 tons in November and 1 million tons “immediately thereafter.” A further 3 million tons would follow, depending on conditions at Russian refineries, CNBC reported.
The White House did not say who would pay for the fuel or whether November shipments would arrive before Election Day. A Kremlin readout said Russia “confirmed its readiness to supply oil and oil products to the American and global markets,” and that the two leaders also discussed Ukraine and Iran. Russian Deputy Prime Minister Alexander Novak told the state news agency Tass that Moscow would lift its own diesel export restrictions ahead of schedule and could begin supplying the United States in October.
OFAC General License 135 explained
The legal mechanism is Russia-related General License 135 from the Treasury’s Office of Foreign Assets Control. The license text, signed by OFAC Director Bradley T. Smith, authorizes transactions tied to the sale, delivery, offloading and importation of Russian-origin diesel, including into the United States, through 12:01 a.m. Eastern time on April 7, 2027. It does not permit debits from U.S. accounts held by Russia’s central bank, its National Wealth Fund or its Finance Ministry.
Washington has issued several narrower waivers on Russian fuel since the Iran war began this year, typically for 30 days. According to the AP, this is the first diesel license since the start of the Ukraine war to run longer than that standard window.
Why diesel prices are so high
The national average for diesel stood at $6.28 a gallon on Friday, according to AAA, after reaching a record $6.52 on Sept. 22. The war with Iran has disrupted global energy flows, a backdrop covered in our report on Trump’s Iran strike pledge before the midterms.
Russia itself has had little diesel to spare. It has banned diesel exports since July because repeated Ukrainian drone strikes on its refineries left it short at home, and the International Energy Agency estimates Russian diesel output has dropped about 30%. Michael Lynch of the Energy Policy Research Foundation told the AP the deal amounts to “shuffling deck chairs on the Titanic,” since fuel sent to the U.S. would simply be diverted from Russia’s existing buyers.
Backlash from Kyiv and Congress
The license arrived three weeks after Trump signed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which lets him impose tariffs of up to 100% on the top buyers of Russian oil and gas. The United States has not imported Russian oil or gas since a 2022 ban imposed after the full-scale invasion of Ukraine.
Zelensky called the decision “a weak decision by strong partners” and said Ukraine’s negotiators, who were meeting U.S. envoys at the Ukraine peace talks in Miami that day, were “simply being used as a smokescreen.” He described the sanctions relief as “an investment in a war that must be ended, not prolonged.” Hours later, Russian glide bombs killed at least 15 people in the Zaporizhzhia glide bomb attack.
Sen. Richard Blumenthal, D-Conn., said the move was “directly contrary to Congress’s intent.” Rep. Michael McCaul, R-Texas, said he understood the push for lower prices but feared the relief “will only fund the Kremlin’s war machine.” Rep. Don Beyer, the senior House Democrat on the Joint Economic Committee, called it “infuriating.” An account associated with Putin’s economic envoy Kirill Dmitriev welcomed the deal as cooperation that “will benefit the world.”
What to watch next
Key questions include when the first cargoes actually sail, whether pump prices move before Nov. 3, and whether the administration still applies the Graham Act’s tariffs on major buyers of Russian energy this month. European allies’ response, and any linkage to an energy truce in Ukraine, will also shape how long the license survives.
Sources
- U.S. Treasury OFAC: General License No. 135 (text)
- U.S. Treasury OFAC: Issuance of Russia-related General License
- PBS News / Associated Press: Trump strikes deal with Putin for Russian diesel
- CNBC: Trump’s diesel agreement accused of contradicting Russia sanctions law
- The Guardian: Ukraine war briefing on the diesel deal
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