President Donald Trump announced Friday that Russia will supply diesel fuel to the global market, claiming the move would rapidly reduce record-high diesel prices. The agreement followed what Trump described as a "highly successful discussion" with Russian President Vladimir Putin.
Under the deal, Russia will immediately supply more than 300,000 tons of diesel, then 500,000 tons in November, followed by 1 million tons "immediately thereafter" and 3 million more depending on refinery conditions, Trump stated in a Truth Social post. The Treasury Department said Trump directed the Office of Foreign Assets Control to issue a "temporary general license" authorizing sanctioned transactions for approximately six months, until April 7.
The announcement drew immediate criticism for contradicting recent U.S. sanctions efforts. Congress passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 just three weeks earlier, empowering Trump to impose tariffs up to 100% on major purchasers of Russian crude oil or gas. Trump signed that bill into law.
Scott Lincicome, vice president of the libertarian Cato Institute, questioned the contradiction on social media. Sen. Richard Blumenthal, D-Conn., a member of the Senate Ukraine Caucus, accused Trump's move of being "directly contrary to Congress's intent in our bipartisan sanctions bill."
Criticism crossed party lines. Rep. Michael McCaul, R-Texas, said while understanding the desire to lower diesel prices, "lifting of sanctions on Russian oil will only fund the Kremlin's war machine, emboldening more violence and destruction."
Peter Harrell, visiting scholar at Georgetown University Law Center's Institute of International Economic Law, said the move "pretty much proves the point that the Graham Russia Bill was not going to force the Trump Administration to increase economic pressure on Moscow."
Ukraine President Volodymyr Zelenskyy called the easing of sanctions "an obvious weakness" and said it "plays into Russia's hands." He added that allowing Russia to sell petroleum products constitutes "an investment in a war that must be ended, not prolonged."
Less than a year earlier, the Trump administration had sanctioned Russian oil companies in response to what it called "Russia's lack of serious commitment to a peace process." Trump had previously criticized NATO allies for purchasing Russian oil, tweeting in September 2025 that such purchases weakened negotiating positions against Russia.
Jeremy Siegel, professor emeritus of finance at Wharton, told CNBC the move represents "sort of a short-term Band Aid" and called it "a very unfortunate consequence."
The White House did not immediately respond to questions about the diesel agreement.