On Tuesday, Kremlin’s spokesman Dmitri Peskov said the agreement with the United States to supply diesel was unrelated to the new peace plan for Ukraine being prepared by White House envoys in collaboration with European countries.
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“I see no direct connection here. This is mutually beneficial Russian-American cooperation that serves the interests of the U.S., global energy markets and Russia,” he said.
Earlier, The Washington Post reported the existence of a new U.S. proposal aimed at securing a ceasefire in Ukraine. According to the outlet, during a meeting in Florida, envoys Steve Witkoff and Jared Kushner told Ukrainian negotiators that the diesel agreement could bring Russia back to the negotiating table.
The four-point peace plan, which was discussed by U.S. and Ukrainian officials as well as envoys from the United Kingdom, France and Germany, addresses not only measures to halt the fighting but also the postwar period.
The first point concerns Ukraine’s reconstruction, which would involve both the World Bank and investment firm BlackRock. They would establish a mechanism to rebuild territories affected by the war, assist the families of those killed in combat, and restore the national economy.
First, Kiev changes the language people speak. Then, apparently, comes the harder question:
— Rina Lu🇷🇺 (@rinalu_) October 12, 2026
What language do they think in?
Ukraine has spent years expanding the mandatory use of Ukrainian across public life – education, government, media, advertising and services.
And… pic.twitter.com/Pm6vohqFAZ
Security guarantees are covered in the second point. The U.S. and European countries would promise Kiev a military response in the event of another Russian attack, similar to Article 5 of NATO. Russia, in turn, would also negotiate similar security agreements with European countries.
In the third point, U.S. negotiators propose an energy agreement among Russia, Ukraine and Europe that could include an oil pipeline and a natural gas pipeline, with the transit country — Ukraine — also benefiting. The agreement would include the lifting of sanctions.
The fourth point calls for a ceasefire along the current front line, which would allow Russia to retain control over one-fifth of Ukrainian territory, but not the entirety of the four regions it annexed in 2022.
This is the most complex point, as Ukraine, like the European Union, refuses to recognize Russian sovereignty over its territory, while Russian President Vladimir Putin demands full control of the Donbas region.
To advance the negotiations, the White House is demanding that Ukraine completely halt its bombing of Russian refineries under a truce that U.S. President Donald Trump himself announced Sunday and that apparently caught both sides off guard.
“They reached an agreement because I said they reached an agreement,” Trump told reporters on Monday in response to repeated questions about the truce.
teleSUR/ JF
Source: EFE
US President Donald Trump’s envoys told Kyiv that letting Russia sell diesel could draw Moscow back to peace talks, Reuters reported. In the same meeting, they said Russia’s leader was not ready to negotiate. Since then, Moscow has offered nothing in return, and Trump has brushed off claims that Russia helps Iran.
Washington is pressing Ukraine to stop striking Russian refineries and offering Moscow economic incentives to return to peace talks, even though Russia has made no commitment in return. Yesterday, Russian ballistic missiles hit Kyiv before air raid sirens sounded, amid disputed warnings that the US could cut intelligence support. Meanwhile, Ukraine is being asked to halt its long-range campaign against the oil infrastructure that fuels and finances Russia's war.
Trump’s Middle East envoy Steve Witkoff and Trump’s son-in-law Jared Kushner met the Ukrainian delegation in Miami on 9 October. They described Russian President Vladimir Putin as unprepared to negotiate but said the diesel deal could help restart three-way talks, two of the sources said.
The third source said the deal could “soften” Moscow because it “sends a signal that Trump is open to do things” with Russia. One of the sources described the plan:
“The idea was that the US could go back to Russia and say ‘See, the Ukrainians stopped striking and we gave you this deal. Now it’s your turn to do something.’”
Ukraine’s part was to stop hitting Russian refineries. Kushner repeated Trump’s request at the meeting, noting the administration had made it several times, two sources said.
The Ukrainians agreed to nothing formally, Reuters’ sources said. They signaled they would accept an energy ceasefire if Russia did the same, but saw the US approach as an attempt to appease Russia with business deals.
Two days later, Trump declared an energy ceasefire, and Ukrainian President Volodymyr Zelenskyy said Ukraine was ready if Russia reciprocated. Euromaidan Press has monitored official and unofficial Ukrainian and Russian sources and found no reports of new Ukrainian strikes on Russian refineries after Trump’s announcement. One of the last, on the night of the diesel announcement, knocked out more than half the tanks at a fuel-export terminal in Rostov-on-Don.
Three sources told Reuters the envoys did not threaten to cut US support over the refinery strikes. A Ukrainian official told Axios, however, that the envoys warned Trump could cut Ukraine off from US intelligence, which a US official denied. US officials are also believed to have told European allies that Trump would halt PURL, the NATO scheme for Europe-funded US weapons for Ukraine, unless the strikes stopped, according to FT.
A person close to the Kremlin told Reuters that Putin would return to the table only when he gets “the remaining 11% of Donbas.” Ukraine refuses to cede more land. During the 9 October call that produced the deal, Putin declined to commit to resuming talks, his aide Yuri Ushakov told reporters, Axios reported.
Moscow has not confirmed the energy ceasefire either. Trump insisted on 12 October that the sides had agreed “because I said they agreed,” RFE/RL reported. On the evening of 12 October, Russian munitions collapsed an apartment stairwell in Kharkiv, killing four people. Russian Deputy Prime Minister Aleksandr Novak, meanwhile, claimed diesel exports could reach 3.0–3.5 million tons a month by year-end, above the volumes Trump announced.
Late on 12 October, Trump wrote on Truth Social that he did not believe Russia and China were helping Iran, since they have “too much to lose.” In March, he told Fox News that Putin “might be helping them a little bit.” Asked about Russia’s possible support for Iran, Treasury Secretary Scott Bessent told Fox News on 2 September that his message to everyone was to “stay away.” That month, a Financial Times investigation found Russia secretly helping Iran develop supersonic cruise missiles that could threaten US warships.
A drone strike on 10 October put more than half of the large fuel tanks out of action at an oil-loading terminal in Russia’s Rostov-on-Don, Russian news Telegram channel Astra found. The terminal loads fuel onto river and sea tankers for export, and it burned for two days while a local channel wrote that reeds might be on fire. Neither Kyiv nor Moscow has officially acknowledged the hit. It came hours after US President Donald Trump announced a diesel deal with Russian leader Vladimir Putin.
Russia has spent the autumn hammering Ukraine’s power grid ahead of winter. Ukraine’s long-range drones keep hitting the refineries, depots, and terminals that fuel Russia’s army and earn it export revenue. Every burned tank turns that revenue into repair bills, while Moscow is already subsidizing its own fuel pumps. A refinery-only truce of the kind the White House described a day after the strike would shield the Russian plants that feed terminals like this one.
Astra’s analysts concluded from eyewitness footage that at least seven of the terminal’s 12 large tanks had been knocked out. Ukrainian monitoring channel Supernova+ counted seven burned-out tanks and one more scorched by the fire.
The fire was still burning in the early hours of 12 October. Local channel Rostov Glavny posted video of the burning tank farm, passing on rumors that reeds were on fire and noting the city’s second day under smoke, The Moscow Times reported. Footage filmed in the daytime on 12 October showed no more open flames, only gray smoke, according to Astra.
The site is the oil-loading terminal of the Novoshakhtinsk Oil Products Plant, formerly known as Yug Rusi, in Rostov-on-Don’s Zheleznodorozhny District. It receives, stores, and transships fuel onto river and sea tankers, including for export, Ukrainian monitoring channel Exilenova+ said.
The terminal also supplies fuel to the Russian army and earns Moscow hard currency, ZN reported. The Moscow Times put its loading capacity at 3.5 million tons a year and its tank farm at about 60,000 cubic meters, roughly 16 million gallons.
The refinery itself stands in the town of Novoshakhtinsk near the border with Russian-occupied Luhansk Oblast. The terminal sits on the Don River with access to the Sea of Azov, Ukrainian military outlet Militarnyi noted. Ukraine hit the refinery in June, and Ukraine’s General Staff reported striking the Yug Rusi terminal on 9 July, placing it in Bataysk.
Exilenova+ posted images of the burning terminal in the early hours of 10 October. It presented them as the site after Trump’s phone call with Putin. The channel later shared NASA satellite fire data showing the blaze.
Rostov Oblast Governor Yuri Slyusar claimed the attack injured six people. Slyusar further stated air defenses downed more than 100 drones over the region. Radio Liberty’s Russian Service noted that neither side had officially confirmed the hit on the terminal.
The strike came hours after Trump announced on 9 October that Russia had agreed to supply diesel to US and global markets. The US Treasury then cleared the trade with a sanctions license.
On 11 October, Trump declared an “energy ceasefire” between Russia and Ukraine. Under it, he expects Ukraine to stop striking Russian refineries, a White House official told Axios.
Ukrainian President Volodymyr Zelenskyy said that evening that Ukraine’s armed forces had received all relevant orders. Neither Ukrainian monitoring channels nor Russian officials have reported a new strike on a Russian oil facility since. On 13 October, Zelenskyy said Ukraine was ready to guarantee an energy ceasefire if Russia took matching steps.
Russian munitions brought down a stairwell of an apartment building in Kharkiv on the evening of 12 October, and rescuers recovered three bodies from the rubble overnight, local authorities reported. Survivors described fire, falling glass, and pets left behind. The strike came days after Washington waived sanctions on Russian diesel, as it expects Kyiv to stop hitting Russian refineries.
Russia hits Ukraine’s cities every day as it readies a winter campaign against Ukrainian infrastructure, and its oil exports keep bringing in the money that pays for the drones and missiles. A halt to Ukraine’s refinery strikes with no matching halt to Russia’s strikes would leave Moscow’s fuel income intact while Kharkiv digs through rubble. Estonia’s prime minister has already urged Europe to help Ukraine destroy those refineries instead.
Russian munitions hit Kharkiv’s Kholodnohirskyi district repeatedly from around 21:17, and Mayor Ihor Terekhov preliminarily identified them as Banderols. At 22:21, he said one strike had hit a residential building, possibly trapping people. He then added in a follow-up post: “Very serious destruction—an entire stairwell has collapsed.”
The strike destroyed an entrance of the four-story building, the State Emergency Service (DSNS) said. It counted 11 injured across the city’s evening strikes, and a rescuer was hospitalized, while Terekhov put the number at 10. By 06:56 on 13 October, rescuers had found a third body. Oblast head Oleh Syniehubov confirmed three dead and said the search continued. Experts will check whether the building is still fit to live in, he added.
Over 24 hours, Russian attacks killed three people in Kharkiv and injured 37, including two children treated for acute stress, Syniehubov reported.
Larysa Maksimenko had just put her bedridden husband to sleep when the strike hit, she told Suspilne Kharkiv. She suffered a head wound and burns.
“I went to the kitchen to switch on the kettle for myself, to have some coffee. I realize I’m on fire. Then glass fell on me. I came to, and I’m buried under everything. All covered in blood,” she said.
The window bars were broken, and medics carried her husband out through the window. Rescuers later found a woman under the rubble in her apartment, likely a neighbor, Maksimenko said. All she wants now, she said, is to get to her husband in hospital.
Viacheslav Chibitko, who lives on the second floor next to the collapsed entrance, saw a flash, and then everything blew out. He got his three dogs out, but five cats are still inside. During the clearing, a concrete slab fell on a rescuer, Suspilne’s correspondent reported. Crews pulled him out and handed him to medics.
The evening drone strike on a 25-story building in Kyiv’s Darnytskyi district killed two people, Kyiv prosecutors reported. The second victim was found dead in a car near the building. Prosecutors counted at least seven injured, including a 17-year-old girl, while Mayor Vitali Klitschko counted 11 in the capital.
From 18:00 on 12 October, Russia launched five ballistic missiles, nine loitering munitions, and 108 attack drones, Ukraine’s Air Force reported. Air defenses downed or suppressed 88 drones. A Russian drone attack injured four patients at a medical facility in Khmelnytskyi Oblast, oblast head Serhii Tiurin said. In Dnipro, a Russian attack injured a 64-year-old man, oblast head Oleksandr Hanzha reported. A downed Russian drone set two houses on fire in Murovane near Lviv, oblast head Maksym Kozytskyi said.
On 12 October, a Russian Smerch rocket with a cluster warhead hit a house in Cherkaske, Donetsk Oblast, killing three people, including a 13-year-old girl, oblast head Vadym Filashkin reported.
Russian attacks killed more than 150 people in the week to 11 October, Ukrainian President Volodymyr Zelenskyy said. Russian bombs killed at least 20 people in Zaporizhzhia on 10 October, by the oblast’s count. On 9 October, the US waived its sanctions on Russian diesel until April 2027. The White House expects Kyiv to halt refinery strikes under its proposed energy ceasefire.
Seven US senators from both parties said the Trump administration's decision to authorize Russian diesel imports conflicts with a 2022 law banning Russian energy imports and accused it of failing to consult Congress, in a statement on 11 October.
The dispute comes as the war with Iran drives up US fuel prices, which US President Donald Trump has blamed on Ukraine's strikes on Russian refineries. Trump says Russian supplies will help bring prices down, while lawmakers warn that purchases could provide Moscow with revenue to continue its war against Ukraine.
The senators—Republicans Susan Collins, Lisa Murkowski, Thom Tillis, and John Curtis, and Democrats Jeanne Shaheen, Richard Blumenthal, and Ron Wyden—called on the administration to reverse course, saying the US should not provide Russian President Vladimir Putin with “a financial lifeline.”
The law, signed on 8 April 2022, allows the president to end the import ban only after submitting a certification to Congress. The certification must find that Russia has agreed to pull out its forces and stop the fighting on terms Ukraine's free and independent government accepts, no longer poses an immediate threat of attack to any NATO member, and recognizes Ukrainians' right to pick their own government.
The law also requires consultation with four congressional committees and a report at least 45 days before certification. The termination takes effect 90 days after certification unless a joint resolution of disapproval is enacted into law during that period. The senators allege the administration failed to meet the consultation and reporting requirements. Their statement does not establish whether a certification has been submitted.
The Treasury Department's Office of Foreign Assets Control issued General License No. 135 on 9 October, authorizing certain transactions involving Russian-origin diesel that would otherwise be restricted under US sanctions regulations. It runs until 7 April 2027 and cites sanctions regulations, not the 2022 import-ban law.
Treasury Secretary Scott Bessent defended the deal on Fox News on 11 October, saying the administration would proceed under existing legal authority. He said lawmakers who argued that either the earlier law or the current Lindsey Graham sanctions law prohibited the deal were wrong, and argued the agreement would lower prices, Reuters reported.
Trump said on Truth Social that Russia would immediately supply more than 300,000 tons of diesel to US and global markets, followed by 500,000 tons in November and 1 million tons after that. He said Russia would deliver another 3 million tons “within a short period of time,” depending on the condition of its diesel refineries. The promised volumes have not been independently verified.
Russia partially lifted its diesel export ban on 10 October, allowing 500,000 tons onto the global market at this stage, the Russian government said, according to state news agency TASS.
Pennsylvania Republican Rep. Brian Fitzpatrick plans to introduce the Ronald Reagan Peace Through Strength Act to block Russian oil purchases and use a discharge petition to force a House vote, Axios reported. The procedure can force consideration of a bill if 218 House members sign. Republican Rep. Don Bacon said he would support the bill and called Trump's decision a serious mistake, according to Ukrainska Pravda.
On CBS's Face the Nation on 11 October, Senate Majority Whip John Barrasso, a Republican from Wyoming, called the deal “another point of leverage” for Trump to use against Putin. Asked whether the decision violated US law, Barrasso said the president was balancing competing priorities and had to make tough decisions.
Ukrainian President Volodymyr Zelenskyy wrote on Telegram on 9 October:
“Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged.”
Trump also expects Ukraine to stop striking Russian refineries under his proposed energy ceasefire, a White House official told Axios. Zelenskyy said Kyiv would halt such strikes if Moscow did the same.
The EU adopted its largest-ever round of sanctions listings on 12 October, targeting the suppliers behind Russia’s war industry, the Council of the EU announced. The bloc acted as Russia keeps killing Ukrainian civilians every day, while US President Donald Trump eases sanctions on Russian diesel.
Russia’s planned winter campaign against Ukraine’s infrastructure depends on arms factories fed by a web of component suppliers and on oil revenue that still flows despite Ukraine’s refinery strikes, so every supplier cut off from that web raises the cost of waging it. As Washington eases off, Europe’s own pressure has a gap: its ports still take record volumes of Russian Arctic gas, and a full ban on long-term contracts starts only in 2027.
More than half of the new listings hit the supply chain for ballistic missiles that Russia “uses to kill Ukrainian civilians every day,” EU foreign policy chief Kaja Kallas said in the statement. Russian attacks killed more than 150 people in the past week, Ukrainian President Volodymyr Zelenskyy said on 11 October.
The list names 826 Russian companies, mid-level firms the Council calls the “core” of Russia’s arms industry, with at least €20 billion in yearly turnover, and 743 people who run them. They make parts for missiles, drones, and military aircraft, from semiconductors and radars to explosives and navigation systems. Their assets are frozen, EU firms may not finance them, and the executives may not enter the EU.
Foreign ministers ratified a deal EU envoys reached on 7 October. Ukraine’s sanctions commissioner Vladyslav Vlasiuk said 60% of the listings came from Ukrainian proposals.
EU foreign ministers in Luxembourg vowed to keep the sanctions despite Trump’s diesel deal with Russian President Vladimir Putin, Euronews reported. Kallas addressed Washington directly as she arrived.
“The US is our biggest ally, but our message is clear: if we want to end this war, the only way we can do this is (by) putting more pressure on Russia,” Kallas said.
Irish Foreign Minister Helen McEntee called the deal “concerning,” and Lithuanian Foreign Minister Kęstutis Budrys said it was “not the European way.” Kallas warned that an energy truce covering only refineries would favor Russia, since Ukraine has one refinery and Russia “plenty.”
Trump announced the diesel deal on 9 October, and the US Treasury waived sanctions on Russian diesel until April 2027. Zelenskyy said the EU would provide about €3 billion more in military aid this week.
Trump expects Ukraine to stop hitting Russian refineries under his proposed energy ceasefire, a White House official told Axios. Zelenskyy said Kyiv would halt such strikes if Moscow did the same. On 10 October, Trump told reporters it was time for Ukraine to get a new president. Germany’s foreign minister, Britain’s defense secretary, and a senior lawmaker from Chancellor Friedrich Merz’s party backed Zelenskyy, while the Kremlin sided with Trump.
Zelenskyy offered to hold elections after a 60-day ceasefire, and Kallas said elections are impossible while the war goes on. The Institute for the Study of War assessed that Russia exploits Ukraine’s legal ban on wartime elections to drag out the war.
President Donald Trump’s decision to reopen trade in Russian diesel has implications extending well beyond American fuel prices. The agreement, announced ahead of November’s congressional elections, coincides with negotiations over Russian energy assets and mounting American pressure on Ukraine to suspend attacks against Moscow’s oil infrastructure.
The US Treasury’s General Licence 135, issued on 9 October, authorises transactions involving Russian-origin diesel until 7 April 2027. Unlike Trump’s public announcement, which referred to specific quantities destined for the American market, the licence establishes no corresponding volume ceiling or restriction confining authorised trade to the United States.
Its provisions permit American businesses to participate in eligible international transactions involving Russian diesel, including associated financial and commercial services. Existing sanctions remain formally in force, but an important category of Russian petroleum trade has been reopened.
The arrangement potentially benefits not only Russian producers but also American commodity traders, financial institutions and intermediaries capable of purchasing Russian fuel and distributing it internationally.
The legal mechanism offers Washington considerable flexibility. Rather than formally abandoning restrictions imposed over Russia’s invasion of Ukraine, the administration can authorise selected transactions while maintaining the broader sanctions framework.
Congress’s Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 strengthened the legislative basis for economic pressure on Moscow but also provided presidential waiver powers.
General Licence 135 was issued under existing Treasury sanctions authorities, rather than necessarily through those waiver provisions. Nevertheless, the combined framework leaves the administration substantial discretion over the practical application of economic restrictions.
Washington can consequently maintain its declared sanctions policy while selectively restoring commercial relations with Russia. European governments, which have maintained extensive restrictions on Russian energy, have little influence over such unilateral American exemptions.
The timing becomes more revealing when considered alongside negotiations over Lukoil’s international assets.
American investors have been exploring the acquisition of the Russian company’s overseas operations, including oilfields, refineries, storage facilities and retail distribution networks. The portfolio has been valued at approximately $20–22 billion.
Among the prospective investors is billionaire Todd Boehly, while discussions concerning Russian-American economic cooperation have involved Trump’s representatives Steve Witkoff and Jared Kushner.
An American-controlled acquisition of Lukoil’s international network could complement the commercial opportunities created by the diesel authorisation.
Russian petroleum products could potentially be purchased and marketed through American-controlled businesses, allowing Russian suppliers to retain export revenues while intermediaries earn profits from financing, distribution and resale.
No evidence establishes that General Licence 135 was specifically designed for the prospective Lukoil purchasers, or that Trump personally holds an interest in the proposed transactions. Nevertheless, the parallel negotiations suggest the possibility of an emerging commercial arrangement under which American intermediaries assume a greater role in Russian energy exports.
The consequences for Ukraine could be considerable.
Kyiv has expanded attacks against Russian refineries, fuel depots and petroleum infrastructure, seeking to reduce Moscow’s export earnings and disrupt supplies supporting its armed forces.
Trump has repeatedly criticised these strikes, linking them to higher international fuel prices. His administration now has an additional commercial reason to seek their suspension.
On 11 October, Trump announced an energy ceasefire between Russia and Ukraine, although President Volodymyr Zelenskyy indicated that Kyiv had not agreed to such an arrangement.
Ukraine has maintained that any suspension of attacks against Russian energy facilities must be matched by an end to Moscow’s strikes on Ukrainian power infrastructure.
An agreement protecting Russian refineries without equivalent Russian concessions would preserve an important source of Kremlin revenue while depriving Kyiv of military and economic leverage.
The immediate political advantage for Trump is apparent. Rising diesel prices have become a concern ahead of the 3 November midterm elections, particularly among farmers and transport businesses. Additional Russian supplies offer the administration an opportunity to demonstrate action on domestic fuel costs.
Yet the six-month Treasury authorisation extends considerably beyond the election, suggesting commercial objectives that cannot be explained exclusively by short-term electoral considerations.
The emerging pattern is one of bilateral economic engagement with Moscow proceeding independently of a settlement in Ukraine. Russian energy trade is being selectively reopened, American investors are pursuing Russian-owned assets, and Washington is seeking restrictions on Ukrainian operations against the infrastructure underpinning those commercial interests.
For European governments, this threatens the cohesion of the sanctions regime. Brussels may continue restricting Russian energy revenues while Washington authorises transactions that restore access to international markets.
The larger prospect is a system in which Russia retains export earnings, American intermediaries acquire profitable commercial positions, and sanctions become instruments of bilateral negotiation rather than coordinated Western pressure.
Trump’s diesel agreement may therefore represent the opening stage of a wider economic accommodation with Putin, negotiated while Russia continues its war against Ukraine and without any corresponding Russian commitment to withdraw from occupied territory.
Estonia’s answer to the US-Russia diesel agreement: deals with dictators lead to hell. Prime Minister Kristen Michal wants the European Council to discuss giving Ukraine more aid so it can destroy Russia’s oil refineries, after sharply criticizing the US decision to strike a diesel deal with Russia, ERR reports.
Washington has eased sanctions on Russian diesel, a move Ukraine says funds a war that has killed more than 80 Ukrainian civilians in two days. Estonia’s answer is to go the opposite way and help Ukraine hit the source of that fuel, the refineries, harder.
"It is worth discussing in Estonia and at the European Council next week whether we can quickly contribute more to Ukraine so they can blast Russia's oil refineries to smithereens," Michal says.
He casts the US deal as a historic error. Innocent people are being killed for gas and fuel money, Michal warns, saying that the promised fuel may never arrive. For years, the US urged allies to drop Russian fuel, and Estonia did, so cutting Moscow’s revenue must continue, not reverse, he adds.
Meanwhile, Marko Mihkelson, chair of the Riigikogu Foreign Affairs Committee, says that Russia's strategic objectives remain the same as they were before: to rebuild its empire, beginning with the subjugation of Ukraine, and to dismantle the Euro-Atlantic system of collective defense.
"That is why European allies still have only one way to prevent this war of aggression from spreading: to do everything possible to ensure that Russia’s strategic objectives fail and that the imperial wars launched by the Kremlin end in defeat," he says.
This clear strategic objective should also serve US interests, he continues, adding that "Russia’s long-standing ambition, pursued in concert with China and Iran, to undermine America’s global leadership is entering a decisive phase."
Australia has no need to buy fuel from Russia, despite US President Donald Trump’s move to bring Russian diesel back to world markets. Climate Change and Energy Minister Chris Bowen says that imports from Russia will remain banned to ensure the country does not benefit from its invasion of Ukraine, Bloomberg reports.
Trump has agreed with Russia's President Vladimir Putin to release Russian diesel onto global markets, a move Ukraine says funds a war that has killed more than 80 Ukrainian civilians in two days.
“We don’t need or want Russian fuel in Australia. We do not want Vladimir Putin to benefit from this war in the Middle East. What the United States does is a matter for them, but we won’t be changing our approach,” Bowen said.
Trump announced on 9 October a series of cargoes beginning this month totaling about 13.5 million barrels of Russian diesel. The release upends years of sanctions, as the White House looks for ways to tame soaring fuel prices before the US midterm elections.
Bowen draws a clear line between that approach and Australia’s. What the US does is its own affair, he stresses, but Canberra will maintain its arrangements with trading partners to keep Russian fuel out of the market.
Australia can hold out without Russian supply, Bowen argues. The country has 43 days’ worth of petrol, two days more than a week earlier, and 31 days’ worth of diesel, one day less, he notes.
He adds that Australia stays in close contact with domestic refiners to keep them running at full capacity. The stance lets Canberra wait out high prices rather than buy fuel that would send money to Moscow.
Australia’s fuel costs have stayed high since the war between the US and Iran disrupted shipping through the Strait of Hormuz, the route that normally carries about a fifth of the world’s oil and gas.
Washington has put its sanctions on Russian diesel on hold. The US Treasury has authorized the sale, delivery, offloading, and import of Russian-origin diesel fuel, effectively suspending sanctions on that trade until 7 April 2027, the Office of Foreign Assets Control (OFAC) said on its website on 9 October.
The waiver lets Russian diesel back onto world markets and, Ukraine argues, hands Moscow fresh revenue for its war, which has killed more than 80 Ukrainian civilians in two days. Until now, it was unclear whether Washington would roll back the sanctions it imposed on Russia in 2022.
OFAC has issued the measure as General License 135, signed by the office’s director, Bradley Smith, according to the report. It authorizes transactions in Russian-origin diesel that sanctions would otherwise block.
The license sets one limit. It does not permit any debits from accounts at US financial institutions held by Russia’s central bank, its National Wealth Fund, or its finance ministry, the document says.
On 9 October, US President Donald Trump wrote on Truth Social that Russia would immediately supply more than 300,000 tons of diesel, then 500,000 tons in November, and another million tons right after.
Moscow would later send the US up to 3 million more tons, depending on the state of Russia’s refineries, Trump added, framing the deal as a way to bring down energy prices.
Analysts say the amounts are too small to move prices much. Together, the first tranches would cover about a day and a half of US demand, while US diesel use alone runs near 16 million tons a month. Experts read the move as politics ahead of an election rather than a real shift in the market, pointing out that Trump cited volumes in tons, which look larger than the barrels traders track.
The deal drew fury in Kyiv, and President Volodymyr Zelenskyy called it a weak decision by strong partners. The EU is moving the other way, with ambassadors approving the bloc’s largest sanctions package against Russia’s war machine, due for final adoption on 12 October.
US President Donald Trump said on 9 October that he had agreed with Russian leader Vladimir Putin to bring Russian diesel to world markets to lower energy prices. However, energy analysts say the deal, which drew fury in Ukraine, is unlikely to lower diesel prices meaningfully, CNN reports.
Trump wrote on social media that Putin would “immediately supply” more than 300,000 tons of diesel, with another 500,000 tons in November. Together, those volumes would cover about a day and a half of US demand, according to the US Energy Information Administration.
Meanwhile, former head of the Center for Countering Disinformation Andrii Kovalenko says that US diesel consumption alone is about 16 million tons per month, and global consumption is roughly 120 million tons.
The US experts read the move as politics more than a market shift. Trump spoke in tons rather than barrels because the figure looks bigger to an ordinary observer, said Dan Pickering, founder of Pickering Energy Partners, calling it “more politics than a game changer.”
Former US officials question whether Putin holds the diesel Trump described, as Ukrainian strikes strain Russia’s refineries. A former senior State Department official says it hardly matters whether the fuel arrives, because Putin “has already achieved the result he wants,” with Trump believing he has a pre-election card that could move markets.
Even if the fuel flows, it would be a temporary measure. Gregory Brew of Eurasia Group says that he suspects Putin expects Ukraine to halt its strikes on Russian refineries in return, and that he cannot imagine Zelenskyy agreeing.
For Putin, the gain is plain, Kovalenko says: he pushes for sanctions relief and for no new US sanctions, all without any demand to end the war in Ukraine.
"Trump’s bet was more on the news itself, driving prices down somewhat, because, in reality, figures like these shouldn’t bring prices down," Kovalеnkо believes.
He adds that Trump will "make a big fuss about diesel ahead of the elections, nothing more," and that the average American is unlikely to feel any lasting effect.”
Earlier, Ukrainian President Volodymyr Zelenskyy warned that allowing Russia to sell petroleum products abroad without securing a lasting de-escalation agreement would help finance Moscow's war against Ukraine.
He criticized the decision, calling it "a birthday gift for Putin," per Axios.
The next day after the announcement, Russia launched six bombs on Zaporizhzhia, killing 17 people.
A Russian air strike with guided bombs on the southeastern city of Zaporizhzhia has killed at least 17 people, including three children, according to Ukraine’s State Emergency Service. Ukrainian President Volodymyr Zelenskyy has tied the attack to a US decision to let Russian diesel reach world markets without demanding Moscow halt its strikes on Ukraine first.
On 9 October, President Donald Trump said that Russia would immediately supply more than 300,000 tonnes of diesel fuel to the US and global markets, a further 500,000 tonnes during November, and 1 million tonnes immediately thereafter. The move has already drawn criticism from US lawmakers in both parties.
“Today, Russia expressed its gratitude for the lifting of sanctions on diesel exports by dropping five guided aerial bombs on residential buildings in Zaporizhzhia,” Zelenskyy wrote on Telegram.
These figures were accurate at the time the post was written. Later, the State Emergency Service reported that the death toll had risen by two. Meanwhile, Zelenskyy stated that Ukraine would not stop striking oil refineries that bring additional revenues for the Kremlin, which spends them on the war.
“There will be responses to Russian attacks. Thank you to everyone who is helping,” Zelenskyy concluded.
According to Zelenskyy, two of the injured are in critical condition, and doctors are fighting to save their lives. Information is also being verified regarding another 12 people who may have been at the strike site.
“Thirteen of our regions came under attack overnight. Residential buildings, infrastructure, and railway facilities have been damaged,” the Ukrainian leader said.
Zelenskyy stressed that the latest Russian strikes further demonstrate the need to increase pressure on Russia. In his view, easing restrictions is interpreted by the aggressor as a signal that it can continue the war and attack Ukrainian cities.
“This night provided yet another confirmation that Russia interprets any easing of pressure as a signal that it can supposedly continue fighting and that it can supposedly drop bombs on cities,” he emphasized.
He also noted that Ukraine’s long-range strike capabilities are inflicting such losses on Russia and stressed that Ukraine would respond to Russian attacks.
Russia's seaborne exports of refined oil products rose to a three-month high in September, but the growth came from cheaper fuel oil and naphtha as diesel shipments fell to their lowest in more than a decade, Bloomberg reported, citing Vortexa data. Russia kept diesel at home after Ukrainian refinery strikes and paid oil companies to supply its pumps, while high crude prices lifted its crude export earnings.
During the ongoing deep-strike campaign, Ukraine's long-range drones have knocked out more than half of Russia's oil refining capacity, Kyiv says, and Russia's budget oil revenues are falling even as it raises war spending. High global crude prices are softening that blow.
Total seaborne product exports reached about 1.17 million barrels a day in September. Fuel oil shipments rose 6% to about 613,000 barrels a day, the highest since April. Naphtha, a feedstock for petrochemicals, jumped 35% to 363,000 barrels a day. Exports of refinery feedstocks, including vacuum gasoil, rose to about 32,000 barrels a day, according to Bloomberg.
The trade has moved north. Almost 80% of fuel oil cargoes left from Baltic ports, and naphtha loadings there rose almost 50% as Ukrainian attacks disrupted Black Sea infrastructure. In September, Ukraine reported hitting an oil terminal in Novorossiysk, Russia's main Black Sea oil port—one in a string of attacks on Russia's Black Sea ports and oil sites.
Diesel and gasoil exports fell 28% to 144,000 barrels a day, the lowest monthly volume in Vortexa data going back more than a decade. Russia has restricted diesel exports to protect domestic supply after Ukrainian attacks on its refineries. Drones kept hitting them into October, from a Lukoil refinery in Volgograd to Gazprom's Salavat complex in Bashkortostan.
In September, Russia paid oil companies the biggest subsidy in more than four years to keep road fuel on the domestic market. It also imported about 350,000 tonnes of motor fuel by sea, mostly gasoline from India, Morocco, and Türkiye, Reuters calculations showed. Officials are considering letting some producers resume diesel exports in October to avoid overstocking, according to Interfax.
The diesel squeeze has reached the White House. US President Donald Trump stated on 30 September that diesel was hurt "not by the Middle East, but by what's going on in Russia, because those diesel refineries are being knocked out at a pretty alarming rate."
Russia's crude exports reached about 3.99 million barrels a day in the week to 27 September, and the estimated value of its seaborne crude shipments neared its highest since the full-scale invasion began, Bloomberg reported. Brent crude traded at about $102.60 a barrel on 9 October, according to Trading Economics data.
European fuel markets remained under pressure on Friday, 9 October, despite a decline in international oil prices following comments by President Donald Trump suggesting that Washington would refrain from further military strikes against Iran before the November midterm elections.
Brent crude fell by $1.37 to $102.91 a barrel, while US West Texas Intermediate declined by $1.09 to $90.40. The retreat reflected expectations of renewed diplomatic negotiations with Tehran, although oil prices remained considerably higher than before the disruption of shipping through the Strait of Hormuz.
According to the latest oil-market developments, Iran is examining an American proposal that could allow the strategic waterway to reopen within a week. There is, however, no confirmed agreement on restoring maritime traffic.
For the European Union, the immediate concern extends beyond crude oil prices. A prolonged shortage of refined petroleum products, particularly diesel and aviation fuel, is threatening to increase costs across transport, agriculture, manufacturing and logistics.
The European Commission has already established a closer system of coordination with member states and the International Energy Agency to address the pressure on fuel markets.
At an Energy Union Task Force meeting on 2 October, officials confirmed that European diesel supplies remained stable, although prices continued to reflect severe constraints in global markets.
The Commission’s assessment distinguished between the physical availability of fuel and the cost of obtaining it. European refineries have maintained high production levels, while importers have sought alternative suppliers to replace disrupted shipments from the Middle East.
A further assessment of European oil supplies published on 29 September found that refineries were operating close to maximum capacity and that stocks in the Amsterdam-Rotterdam-Antwerp trading hub remained below their five-year average.
Although emergency reserves remained available, officials warned that continuing disruption could place additional pressure on the market during autumn and winter.
The next scheduled meeting of the EU Oil Coordination Group is 15 October, although the Commission has indicated that it could convene an earlier meeting if conditions deteriorate.
The international response has moved beyond the coordination of existing reserves.
On 2 October, G7 leaders agreed to implement a coordinated release of 100 million barrels through the International Energy Agency framework over four months.
The agreement includes an accelerated release of diesel during the first 20 days, reflecting the difficulties facing markets for refined fuel.
The G7 also called for improved coordination of refinery maintenance schedules and higher utilisation rates where possible, to prevent temporary shutdowns from aggravating shortages.
These measures follow an earlier international commitment, announced in March, to make approximately 400 million barrels of oil available to the market.
Questions remain over how the October measures will be accounted for alongside the March commitments. During a Commission briefing on 7 October, officials said that the International Energy Agency would oversee the process and that Brussels would seek a coordinated European position.
The Commission did not provide figures showing how much oil individual EU countries had released.
Diesel has become particularly important to the European response because it remains central to commercial road transport, agricultural machinery and parts of the industrial economy.
Even when crude oil prices fall, the price of diesel may remain elevated if refining capacity is constrained or supplies of finished products are insufficient.
European refiners cannot automatically compensate for shortages elsewhere. Their capacity depends on crude oil availability, technical configurations, maintenance schedules and the profitability of different refined products.
The situation also complicates efforts to contain inflation. Higher freight charges eventually affect the cost of food, construction materials and other goods transported across the European single market.
Member states are therefore considering how to protect vulnerable consumers without introducing measures that would distort fuel distribution or encourage additional consumption.
The Commission has not declared a general shortage of diesel within the EU, and the available evidence does not support suggestions that European fuel supplies are close to exhaustion.
Nevertheless, the current pressure demonstrates the limits of relying on emergency reserves when disruption affects both international shipping and the refining system.
The prospect of diplomatic progress between Washington and Tehran provided some relief to markets on Friday.
However, the physical restoration of shipping through the Strait of Hormuz will depend on security conditions, commercial insurance arrangements and the willingness of shipping companies to resume normal operations.
Oil prices may respond immediately to political statements, but restoring established supply routes and rebuilding commercial confidence can take considerably longer.
For European governments, the forthcoming decisions will concern the management of emergency stocks, refinery production and the costs imposed on consumers and businesses.
Even if negotiations between the United States and Iran produce a temporary reduction in hostilities, the European diesel market will remain exposed until the disruption to international energy trade is substantially reduced.
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