President Donald Trump announced on Friday, October 9, 2026, that Russia will supply nearly five million tons of diesel to global and U.S. markets following a phone call with Russian President Vladimir Putin. In response, Ukrainian President Volodymyr Zelensky criticized the agreement, stating that the revenue would provide funds for Russia’s ongoing war in Ukraine. The U.S. Treasury Department issued a temporary license easing sanctions to allow the exports, a move Zelensky suggested undermined concurrent peace negotiations.
The agreement comes amid elevated energy costs linked to the four-year-old war in Ukraine and the U.S. military conflict in Iran. As the announcement was made, a Ukrainian negotiating team including presidential chief of staff Kyrylo Budanov was in Florida for two days of talks with U.S. envoys Steve Witkoff and Jared Kushner. Those discussions were intended to explore a ceasefire and a halt to attacks on energy infrastructure. Zelensky stated to reporters that his delegation was being used as a "smokescreen" for the deal.
According to Trump, Russia will "immediately" supply 300,000 tons of diesel, followed by 500,000 tons in November and 1,000,000 tons shortly thereafter. An additional 3,000,000 tons are expected within a short period. Russian presidential envoy Kirill Dmitriev said the cooperation would "benefit the world." However, Zelensky argued the deal is a "weak decision" that "only feeds Putin," while noting that U.S. diesel prices averaged $6.28 per gallon on Friday compared to $3.68 one year ago.
The decision also impacts the international sanctions regime designed to isolate the Russian economy. Since the invasion of Ukraine in February 2022, the U.S. and its allies have sought to deprive the Kremlin of energy revenue. This new Treasury Department license, which extends into April 2027, marks a shift by permitting transactions that were previously restricted. Critics, including the Ukrainian government, state this sets a precedent of prioritizing domestic inflation over the economic pressure intended to end the war, potentially providing Moscow with billions in new revenue for military operations.
What happens next depends on the speed of the fuel delivery and the results of the November 3 midterm elections. While the Treasury has authorized the transactions, it is not yet reported when the first 300,000 tons will physically reach the U.S. or global marketplace. The peace talks in Florida between the Ukrainian delegation and U.S. envoys are scheduled to continue for two days, though Zelensky has characterized the diesel deal as a setback for those negotiations. Further shipments of 500,000 tons are scheduled for November 2026.