The Trump–Putin Diesel Deal Isn’t What You Think
Events of the last few days will have limited economic impact but bring political benefits for Russia.
While Ukraine’s negotiating team was meeting with the U.S. envoys Jared Kushner and Steve Witkoff last Friday, they were blindsided by President Donald Trump’s announcement that he had made a deal with Russia’s President Vladimir Putin.
Trump announced that Moscow had agreed to lift its export ban on diesel fuel and immediately supply 300,000 tons to the American and global market, followed by another 500,000 in November, then a further 1,000,000, and, eventually, another 3,000,000. To facilitate these imports, the U.S. would provide a sanctions waiver, and the U.S. Treasury would issue a temporary general license for Russia to sell diesel on the global market through April 7, 2027.
Kiev reacted with fury. The Ukrainian negotiators left Miami, flying home without attending the planned second day of talks. A senior Ukrainian official said that the deal “completely” ruined trust between Kiev and Washington. Ukraine’s President Volodymyr Zelensky complained, “It is certainly not how partners should treat each other.” Hours later, Ukraine struck a Russian oil refinery, as senior officials in Kiev had threatened it would do.
Trump and his supporters say the deal will lower diesel prices for the U.S. and the world. Ukraine, Europe, and Trump’s detractors say the deal will send more money into Moscow’s war machine. The deal will have less of an impact on either front than both sides claim—but that doesn’t mean it won’t prove significant.
Though it provides the appearance of a quick fix and may have briefly reduced oil prices, such effects could only be brief and trivial. Russia is now set to export 1.8 million tons of diesel fuel over the next few months and, eventually, another 3 million. But the world uses 3.5 million to 4 million tons a day, and the U.S. alone burns through half a million.
The deal won’t do much to boost the Russian economy, either, which is still functioning despite massive Western sanctions. Russia’s diesel production has apparently been running at a surplus for a while, and its own ban on exporting diesel would probably have been lifted shortly anyway. Exports to Central Asia were up dramatically last month. Though Europe may still refuse to purchase Russian diesel under the U.S. waiver, world demand is acute, and Russia would easily have found a market for its diesel amid a general supply crunch caused by the Iran War.
But the deal is symbolically and politically significant. It comes amid plummeting popular support in Ukraine for Zelensky. Trust in the Ukrainian leader and desire for him to stay on as president after the war are sinking. Polls show that he would likely lose the next election. The deal only worsens Zelensky’s political challenges, forcing him to either abide by Trump’s wishes for Ukraine to cease strikes on Russian oil refineries or risk further inflaming tensions with Washington. So far, Zelensky is choosing the latter.
When Ukraine struck another refinery after the announcement of the deal, Trump reacted with fury. “Do whatever you want, but don’t hit the diesel fuel,” Trump says he told Zelensky. “So, what does he do? He goes and hits refineries…. He’d better damn well stop.”
This rupture is the worst crisis in Zelensky’s relationship with Trump since their public confrontation in the Oval Office in February of last year. This summer, Trump seemed to be swinging in Zelensky’s favor—but not anymore. Zelensky said Trump’s deal was “not fair and not honest.” He accused Trump of using talks with Ukraine “as a smokescreen” while the U.S. cut “backroom deals” with Russia, and he said the episode demonstrated Trump’s weakness to the world.
Trump shot back. “I think it’s time for Ukraine to get a new president,” he said. “I suggest they get a new leader who can make a deal because he could have made many deals, but for some reason, he never does.”
As the rift widened, Witkoff and Kushner warned the Ukrainian team that crucial intelligence-sharing could be cut off if Kiev doesn’t fall in line with Washington’s demands. On Monday night, when Kiev was struck by Russian ballistic missiles without warning, it was unclear if the U.S. had followed through on the threat. “Regarding this strike,” Zelensky said, “unfortunately, there was no warning from our partners.” But Ukraine’s Foreign Minister Sybiha said Ukraine is still receiving U.S. intelligence and that the failure was not due to policy but to the difficulty of tracking “specific type of weapons used by the Russian side.” Trump has since said intelligence sharing has not stopped. But on Tuesday night, Kiev was once again bombarded by ballistic missiles, and Zelensky again said his government had received “no advance warning from our partners.”
Adding to the danger for Ukraine, Elon Musk, whose Starlink satellites are crucial for the Ukrainian armed forces’ battlefield communications, tracking of Russian troops, and selections of targets, backed Trump’s call for Zelensky to be replaced, posting that “Zelensky has gone too far.” On Wednesday, Ukrainian officials said that SpaceX, Musk’s company, “had introduced a limit on some Starlink services within the country, disrupting combat drone missions for which the technology is crucial.”
The significance for Moscow is that it has managed to make an economic deal with Washington that required no Russian concessions in peace negotiations with Ukraine. It is this unshackling of U.S.–Russia diplomacy from the war, not any financial windfall for American’s or Putin’s war machine, that is the true victory for Russia.
The events of the past few days, centering around the Trump–Putin diesel deal, will not have the economic effects the media is focusing on, but they have already brought significant political consequences for both Russia and Ukraine.
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