U.S-Russia Diesel Agreement Will Have Little Impact On U.S. Prices, Experts Warn

U.S. President Donald Trump’s decision to lift sanctions on imports of Russian diesel will not have a major impact on prices or on businesses in the country and overseas, analysts said.

According to the recent announcement, Russia would provide 300,000 tonnes of diesel immediately and 500,000 tonnes next month, and another 1 million tonnes after that.

The move comes ahead of mid-term elections in November and the mounting pressure on Trump to reduce fuel prices in the U.S., which have soared after the war with Iran began in February.

Ukrainian President Volodymyr Zelensky called it a weak move, adding it would prompt Russia to keep targeting Ukraine.

In response, Trump accused Kyiv of attacking Russian energy infrastructure with missiles and drones and contributing to a rise in fuel prices, which led to this decision. He also said that Ukraine needed a new leader.

Zelensky also said Kyiv would stop attacks on Russian oil refineries and other critical infrastructure if Russia also promises to do the same. Trump posted on Truth Social that an energy ceasefire has been declared between Russia and Ukraine and both countries have agreed to stick to the decision.

He also wrote in another post that fuel prices would go down in weeks, especially for Americans, the country’s farmers, ranchers and truckers, who he called his ‘greatest priority.’

However, experts suggest that the volume arriving in the U.S. is too low compared to the demand, and the time it would take for the shipments to get there is too long. It might take weeks before people can actually see a decline in diesel prices.

Diesel prices in the U.S. have surged by 70% since the Iran war began, to around $6.50 a gallon. The U.S. Treasury Department has suspended sanctions on Russian diesel until April 7, as part of the deal, while keeping sanctions on other russian commodities.