Trump waives Russian sanctions and buys diesel as Ukraine condemns betrayal

US President Donald Trump has used his executive authority to pause key sanctions on Russia and announced a deal to allow Russian diesel onto US and global markets, prompting fury in Ukraine and unease among Washington's allies.

The deal was announced in a social media post after a call with Vladimir Putin. Trump said Russia would immediately supply over 300,000 tonnes of diesel to the American and global market. A further 500,000 tonnes would follow in November, then one million tonnes, with an additional three million tonnes possible soon afterwards. He said the move would bring diesel prices down 'in record numbers and fast' and thanked Putin. Lower prices for farmers, truckers and ranchers, he said, were his greatest priority.

The US Treasury issued a six-month waiver on sanctions covering Russian diesel. Trump later signed an executive order waiving key sanctions under a law he had signed only last month. The law was due to bring restrictions on President Putin and Russian government entities into force on Sunday. The order said the waivers would remain until further notice and cited US national interests. The White House did not explain in detail how the move served those interests.

Market reaction

Markets reacted quickly. Diesel futures on New York exchanges fell by about 4% after the announcement. But energy analysts questioned how much difference the volumes would make. The first 300,000 tonnes amount to about 2.2 million barrels. The US consumes roughly 3.6 million to 3.8 million barrels of diesel a day, so the initial shipment would cover less than a day of demand. Industry experts said the announced numbers addressed only around 7% of the gap between US diesel production and consumption. One analyst described the total as about four days of Russia's usual diesel exports.

The backdrop is a sharp rise in fuel costs. Diesel prices in the US have been around $6.20 a gallon, compared with about $3.25 before the conflict with Iran began. The war with Iran and disruption around the Strait of Hormuz have squeezed Middle East supply. Ukrainian drone strikes on Russian refineries have also hit Russia's refining capacity. Russia had restricted diesel exports, and reports differ on whether it has enough spare diesel to deliver. One expert said Russia has a surplus of diesel but a shortage of regular gasoline. Others said 30% to 40% of Russian refining facilities have been damaged, making large new exports doubtful.

Ukraine and allies react

Ukraine reacted with anger. President Volodymyr Zelensky called the deal a gift to Putin, a weak decision by strong partners and an investment in a war that must be ended, not prolonged. He said every extra billion dollars Russia earned would be spent on weapons, drone upgrades, missiles and mercenaries. Russia, he said, would repay the diesel with further terror and perfidy. A Ukrainian MP said Kyiv could no longer trust the US leadership. The financier Bill Browder said the deal removed Ukraine's main military leverage, its strikes on Russian refineries.

The Kremlin acknowledged the deal. It said Russia was ready to supply oil to the US and that Putin was confident it would have a positive effect on the global economy. Russian officials also gave details of the 90-minute call, saying Trump warmly wished Putin a happy birthday and that neither leader wanted to hang up first. It was unclear what Russia would receive beyond hard currency.

European allies were caught off guard. Finland and Sweden were among the few nations to criticise the deal publicly. The UK government said it would keep pressure on Russia through sanctions. Defence Secretary Wes Streeting later said Britain did not support the decision, pointing to the US midterm elections and cost of living pressures as context. He said the UK would prefer a stronger approach on sanctions.

Political reversal

Trump's move is a sharp reversal. Only weeks ago he signed a law allowing sweeping tariffs on countries that buy Russian oil and gas. A year ago he told European countries to cease all energy purchases from Russia. In remarks after the diesel deal, he also turned on Zelensky, saying Ukraine's president could have settled the war and should stop hitting Russian refineries. He added that it was time for Ukraine to get a new president.

Hours after the announcement, Russia launched overnight attacks on Ukraine. Officials said at least eight people, later revised to at least 15 or 17, were killed in the Zaporizhzhia region, including three children. Ukraine also struck an oil loading terminal in Rostov-on-Don. The deal has not stopped the fighting, and it is unclear whether it will bring meaningful relief at the pump before US voters go to the polls.