President Donald Trump announced on Friday, October 9, 2026, that Russia has agreed to supply diesel fuel to global markets. The announcement followed a phone call between Trump and Russian President Vladimir Putin amid rising fuel costs following a war in Iran.
The agreement follows a period of economic sanctions on Russia since its 2022 invasion of Ukraine. To facilitate the supply, the Treasury Department announced a temporary waiver of sanctions on Russia's energy sector. These developments come after Russia had banned diesel exports as its refineries became targets of Ukrainian strikes. According to The Hill, Russia had extended that ban through the end of October.
According to a Truth Social post by Trump, Russia will release 300,000 tons of diesel immediately, followed by 500,000 tons in November and 1 million tons "immediately thereafter." Trump stated that Russia will later deliver an additional 3 million tons based on the condition of its refineries. This supply aims to lower diesel prices, which reached a record $6.53 per gallon on September 22.
The Trump administration has pursued other measures to lower fuel costs, including an executive order this week allowing the use of red-dyed diesel on highways. Red-dyed diesel is exempt from the 24.4-cent federal tax per gallon. Trump also cited U.S. military escorts of crude oil through the Strait of Hormuz as a factor in his effort to bring prices down.
The Treasury Department's decision to waive energy sanctions represents a shift from the administration's recent legislative actions, such as the bill signed by Trump last month that imposed tariffs on buyers of Russian energy. The move comes as high fuel costs have become a major issue ahead of the 2026 midterm elections.
Consumers and industry professionals may see changes in fuel prices as the 300,000 tons of diesel enter the market. Further shipments are scheduled for November and December 2026. The administration's next steps involve monitoring the delivery of the promised 3 million additional tons.