Treasury license permits Russian diesel sales through April 7

Ukrainian President Volodymyr Zelensky on Friday condemned Trump’s announcement of a deal with Russia to supply millions of tons of diesel to the global market. “Gifts to Putin will not bring peace or any benefit to the civilized world,” Zelensky said in a statement following the announcement. “Russia will ‘repay’ the diesel with further terror and perfidy.”

“Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged,” Zelensky added. “What is needed is real de-escalation with Russia on a reciprocal basis.”

Trump announced the deal on Truth Social on Friday, saying Putin agreed to deliver more than 300,000 tons of diesel immediately, followed by another 500,000 tons in November and 1 million tons shortly afterward. The Treasury Department said it was issuing a temporary license allowing Russian diesel to be sold on the global market despite existing U.S. sanctions. The license will remain in effect until April 7.

“Between our TOTAL CONTROL of the Strait of Hormuz, and this great announcement on Russian Energy, Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST!” Trump wrote. “Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority.”

The arrangement marks a reversal of U.S. efforts to restrict Russian energy exports that began after Russia’s invasion of Ukraine in 2022. The United States banned imports of Russian oil and other energy products that year in response to the war.

The diesel agreement follows separate U.S. sanctions legislation targeting Russia’s energy sector that Trump signed last month. The legislation includes measures against Russian banks, officials and oil tankers used to circumvent international restrictions.

The diesel deal arrives against a backdrop of surging fuel prices driven by the ongoing war in Iran, which has disrupted global oil supplies and shipping through the Strait of Hormuz. Diesel prices have climbed nearly 70% since the start of the Iran war in February. The national average price for diesel was about $6.27 per gallon Friday, according to AAA.

The Treasury license runs through April 7, setting a defined window for the policy reversal.