With affordability concerns threatening Republican control of Congress, President Donald Trump last week announced an agreement to increase supply by relaxing sanctions on Russian diesel fuel. But economists say lower prices are unlikely to result, and the announcement produced pushback from both Ukraine and Trump’s GOP allies. The only clear beneficiary may be Russian leader Vladimir Putin.
‘More dangerous world’
The president’s deal “has no winners,” said Keith Johnson at Foreign Policy. Trump’s announcement will not “help consumers, won’t help Kyiv and won’t mean riches for Moscow.” The global market consumes about 120 million tons of diesel monthly. The 500,000 tons offered by Russia is “too small to move prices.” And the move does nothing to address the U.S. war on Iran, which is the “real cause of the global energy crunch.”
It “makes no sense” to think easing pressures on Russia can “lower diesel prices before the midterms,” said Timothy Snyder at Project Syndicate. Moscow is already struggling with its own “domestic shortages” because of Ukraine’s attacks on Russian energy infrastructure. But the announcement has the effect of “visibly aligning” the United States with Russia. The president’s “openly pro-Russian foreign policy” is creating a “more dangerous world” of emboldened aggressors.
Trump’s move has created a rift with both “Republican allies and European leaders,” said Nick Wadhams at Bloomberg. It is a bet that “lowering fuel prices will be the best way to win more votes next month.” The gambit is “unlikely to succeed.”
Helping the Russian economy?
Trump “proffered sanctions relief for Russian diesel” while Putin “offered more war” in return, Paul Sonne said at The New York Times. The deal benefits Trump to the extent it enables his “stubborn denial that his own decision to go to war against Iran caused fuel prices to skyrocket.” And it could “pour billions of dollars into the Russian economy,” further enabling Putin’s war against Ukraine.
Putin is a “dictator reviled by most Americans,” said Axios. Polls show 81% of Trump’s voters dislike the Russian leader. That makes it “unclear” what the agreement will do for “American security, European allies or his own political fortunes.”