Russian diesel fuel could reach the U.S. market before the November 3 midterm elections after Donald Trump suspended sanctions on its exports and Vladimir Putin lifted the corresponding ban. The New York Post reports, writes UNN.
Details
According to one of the publication’s American sources, Russia has agreed to supply a "fairly substantial" volume of fuel. However, the sources did not disclose specific plans for its delivery to the United States.
Trump previously said the agreement should help ease pressure on global fuel prices. On Tuesday, he told reporters that the diesel was intended for the global market, which had been hit by high prices.
Trump reached the agreement on diesel fuel supplies with Putin after expressing dissatisfaction with Ukrainian attacks on Russian oil refineries. According to The New York Post, the United States repeatedly asked Ukrainian President Volodymyr Zelenskyy to refrain from such strikes, arguing that they affected American consumers.
Zelenskyy criticized the agreement on Russian fuel, calling it a "weak" decision that would provide Russia with funds to continue its war against Ukraine. At the same time, he later agreed to Trump’s demand not to attack oil refineries.
Experts estimate that the deal could bring Moscow an additional $4 billion in revenue.
On Sunday, Trump announced a limited "energy truce" between Russia and Ukraine. According to a U.S. official, Russia agreed not to attack Ukrainian oil refineries and gas stations on the condition that Ukraine halt drone attacks on Russian oil refineries.
At the same time, the agreement does not provide for an end to Russian strikes on other targets in Ukraine, including the energy system. Ukraine currently has no operating oil refineries, although it could theoretically resume their operation during a pause in hostilities.
Diesel fuel prices in the United States
According to the American Automobile Association (AAA), the average price of diesel fuel in the United States is $6.30 per gallon. This is nearly twice as much as a year ago, when fuel cost $3.66 per gallon.
At the end of September, the price reached a record level of $6.53 per gallon.
Despite other measures by the Trump administration to contain fuel costs, including expanding the ability to purchase tax-exempt red-dyed diesel, prices remain high.
Rising fuel costs are affecting consumers. In September, annual inflation in the United States accelerated again, reaching 3.7%.
High fuel prices remain one of the economic challenges for the Trump administration ahead of the November 3 midterm elections for Congress. According to the publication, prices have risen significantly over the past year, in particular because of the nearly eight-month war between the United States and Iran, which has restricted shipping through the Strait of Hormuz.