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Russian fuel deal targets diesel prices
President Donald Trump announced an agreement with Russia to supply diesel fuel to the United States and global markets, casting the deal as an effort to lower prices less than a month before the Nov. 3 midterm elections.
Trump said Oct. 9 that he had completed discussions with Russian President Vladimir Putin. Under the agreement, Russia would immediately supply more than 300,000 metric tons of diesel, followed by another 500,000 tons in November and 1 million tons soon afterward. Trump said Russia would provide an additional 3 million tons in the near term, depending on the condition of its refining facilities. Russia confirmed the agreement.
The Treasury Department’s Office of Foreign Assets Control said it would issue a temporary general license allowing the sale, delivery, unloading and importation of Russian diesel. The authorization is set to remain in effect until 12:01 a.m. Eastern time April 7.
Trump said Russian energy supplies, combined with what he described as U.S. control of the Strait of Hormuz, would quickly reduce diesel prices worldwide. He called lower prices for Americans — particularly farmers, ranchers and truck drivers — his top priority. White House spokesperson Katie Zachaira said the agreement would also help make gasoline and food less expensive.
The planned supply may have limited effects. The 800,000 metric tons expected by the end of November is equivalent to roughly 6 million barrels, or about a day and a half of U.S. diesel demand.
Ukraine and European Union condemn agreement
The deal drew objections from Ukraine, which is at war with Russia, and from the European Union. Ukrainian President Volodymyr Zelenskyy said a gift to Putin would bring neither peace nor benefits to the “civilized world,” arguing that Russia would repay the diesel trade with further terrorism and betrayal. In a separate interview, Zelenskyy compared the agreement to a birthday present for Putin, who recently turned 74.
Trump responded by calling for Ukraine to hold an election and raising the possibility of replacing Zelenskyy. “I think they should have an election,” Trump said Oct. 10.
Kaja Kallas, the EU’s top foreign policy official, said suspending sanctions on Russian diesel would provide Moscow with additional revenue to wage war. She said Europe would not ease pressure on Russia.
The United States had blocked imports of Russian crude oil and petroleum products since March 2022, following Russia’s invasion of Ukraine the previous month. The new diesel policy has also drawn opposition from both Republicans and Democrats in the United States amid concerns that it could weaken pressure on Moscow.
Trump puts economy at center of campaign
At a Republican campaign rally Oct. 10 in Clarksville, Tennessee, Trump warned that a Democratic victory would bring a “1929-style Great Depression” and urged voters to support Republicans. He also claimed his administration had lowered prices and that oil prices remained below levels seen during former President Joe Biden’s administration, despite increases tied to the war with Iran. Early voting in Tennessee begins Oct. 14.
All 435 House seats and 35 of the Senate’s 100 seats will be decided in the midterms, which will establish the 120th Congress. Republicans enter the election controlling both chambers.
A day before announcing the Russian diesel agreement, Trump said discussions with Iran were progressing productively and that he would not attack Iran before the midterms. He said record amounts of oil were moving through the Strait of Hormuz while maintaining that measures blocking Iran would remain in place.
South Korean investment enters Tennessee pitch
Trump also highlighted an investment by Korea Zinc, a major South Korean metals company, as evidence that his tariff policies were producing results. He said the company was investing more than $6 billion and creating 740 jobs in Tennessee’s Montgomery and Smith counties.
The company’s planned integrated smelting complex, known as Project Crucible, has a total estimated investment of about $7.4 billion. Trump said it would be the first new mineral smelter built in the United States since 1979.
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