Kremlin: Contracts on Russian Diesel Supplies to the US Could Be Signed Within Days
The Kremlin says the first contracts for Russian diesel deliveries to the US could be signed in the coming days. Russian supplies could return to pre-sanctions levels by the end of the year.
Russia is preparing to resume substantial diesel exports to the global market, including directly to the United States. On 14 October the Kremlin said the first contracts with the American side could be signed within days. Delivery volumes could reach their pre-Western-sanctions level by the end of the year. The deal is linked to a surge in fuel prices caused by the war in the Middle East.
The Trump–Putin agreement
US President Donald Trump announced last week an agreement with Russian President Vladimir Putin that would allow Russian diesel to reach global markets. The aim is to curb prices, which have risen sharply because of the Middle East war.
Asked by Russian news agencies when the first contracts might be signed, Kirill Dmitriev, the Kremlin's special envoy for economic cooperation, replied: "It will all happen in the coming days." He added that contact with the American side is very close and regular, and that "everything is moving very quickly."
Volumes and expectations
Russian Deputy Prime Minister for energy Alexander Novak said work on supply contracts is under way with American counterparts at both ministry and company level. According to him, deliveries will go to world markets, including directly to the United States. By the end of the year they could reach 3–3.5 million tonnes, which he said is the same as before Western sanctions were introduced. Novak claimed this equals 10% of the world market and that the developments will help reduce fuel prices.
He welcomed the agreement, saying it would bring additional tax revenue to the Russian budget and investment opportunities at a time when Russian military spending has risen sharply since the start of the 2022 offensive in Ukraine.
Background
Fuel prices worldwide have been climbing rapidly since late February, when the US and Israel began a war against Iran. Tehran in turn blocked the Strait of Hormuz, which is vital for oil and gas shipments. The US–Russia diesel deal has drawn sharp criticism from Ukraine and Western allies.
