The US Treasury Department announced a temporary authorization for operations involving Russian diesel fuel, which were previously subject to sanctions. President Donald Trump stated that Russia intends to increase fuel supplies to the global market, and the additional supply should help lower prices.
The Office of Foreign Assets Control (OFAC) reported the issuance of a temporary general license at the President's direction. According to the published information, the authorization applies to operations involving Russian-origin diesel fuel. The original message specifies an expiration date of April 7, 2027.
Trump stated that the initial volume of supplies would exceed 300 thousand tons. According to him, in November, Russia is expected to supply another 500 thousand tons, then 1 million tons, and later the volume could increase by another 3 million tons. The last stage, as the American president claims, depends on the condition of Russian oil refineries.
The Russian stock market reacted to the news with a sharp rise: the MOEX index gained 1.2% in five minutes after reports of permission to supply Russian diesel fuel to the global market.
The decision comes amid high diesel fuel prices in the US. The average price of diesel in the country has reached 6.28 dollars per gallon. This increases pressure on the American administration, which is trying to increase fuel availability and curb costs for carriers and agricultural producers.
Trump expects that the increased supply of Russian diesel will help lower prices faster. However, the final effect will depend on the actual volumes of supplies, delivery times, and the situation in the global petroleum products market.