US President Donald Trump is being increasingly criticised for announcing a deal to import diesel from Russia, as the conflict with Iran is further driving up world fuel prices. Putin agreed to the release of 300,000 tonnes of diesel right now, 500,000 tonnes in November, a million tonnes later, and as much as three million tonnes more if the Russian refineries are working properly.

Trump described the deal as "a price reduction for American farmers, ranchers, and truckers. The transfer occurred just days after he signed a law that imposes new sanctions and tariffs on nations that import Russian oil and gas, which some Republican and Democratic lawmakers say would be in violation of U.S. law.

Global fuel prices have soared | Source: Shutterstock

Seven senators, four Republicans and three Democrats, asked Trump to change his tune, saying that Congress imposed sanctions on Russian energy imports in 2022 to keep U.S. dollars from funding Russia's invasion of Ukraine. According to Ukrainian President Volodymyr Zelensky, the deal is a "gift to Putin" and a "bargain to a war that should be over.

US Treasury is reportedly extending the deadline for Russian diesel exports to be unblocked by sanctions until 7 April, but other Russian assets, such as those held in American banks, are still frozen. Treasury Secretary Scott Bessent justified the deal, noting it would be conducted in the legal framework in place and would help curb prices.

Lukoil-branded fuel storage tanks behind a security fence | Source: iStock

Gas prices are a hot-button, politically sensitive issue before next month's U.S. midterm elections. Average diesel in the U.S. costs $6.28 per gallon, lower than its record dollar price of $6.53 at the end of September. But experts doubt whether Russia will be able to deliver the volumes promised or whether they will have a significant impact on the price of diesel for consumers, as the US is currently using around 3.6 million barrels of diesel a day.

International partners, such as Canadian Prime Minister Mark Carney and UK Defence Minister Wes Streeting, have also attacked the accord, saying Ukraine's friends should try to pressure Russia more strongly instead of de-escalating its economic sanctions.