President Donald Trump has loosened U.S. sanctions on Russian diesel after striking a supply deal with Vladimir Putin, betting that Moscow can help cool American fuel prices that have climbed to $6. The move arrives as farms and truck drivers grapple with climbing costs just ahead of tough midterm elections, and as Russia continues its war in Ukraine.

The deal, announced on Friday in a post on Truth Social, covers roughly 4 million tons of diesel. Russia is to ship 300,000 tons immediately, followed by 500,000 tons in November and 1 million tons not long thereafter. As many as 3 million additional tons could follow, depending on what Russian refineries are able to produce.

Trump turns to Russian fuel as refinery damage drives prices higher

The Treasury Department issued a license on Friday allowing Russian diesel transactions through April 2027. The waiver bypasses restrictions on Moscow's energy earnings, leaving Washington in the position of penalizing Russia for the war while simultaneously helping it sell fuel. Without the license, the shipments would be subject to those same restrictions. The April 2027 expiry gives the arrangement a fixed horizon that runs past the midterm elections, with fuel costs at the center of the campaign debate.

Ukrainian strikes have hampered the operations of Russian refining plants, compelling them to scale back exports. Attacks from Iran and the Houthi rebels have also taken a toll on processing facilities in the Middle East. With refineries damaged across two regions, the losses cannot be made up through any executive order — and diesel's uses extend well beyond fueling automobiles, spanning the farms and trucking fleets now absorbing higher costs. Most of the promised tonnage therefore depends on the same refining capacity those attacks have degraded, making the delivery schedule the number to watch.

Last month, Trump told Ukraine to quit attacking Russian diesel infrastructure because the resulting shortage was "hurting the world." His proposed U.S. diesel export ban collapsed after businesses warned it could drive gasoline prices higher.

A separate executive order issued this week allows truckers to use tax-exempt off-road diesel on public highways without immediate federal punishment. But the tax is postponed, not canceled, and drivers still do not know whether Washington will eventually come to collect it.

Zelenskyy attacks the deal as Trump faces election pressure

Volodymyr Zelenskyy blasted the decision, saying: "Gifts to Putin will not bring peace or any benefit to the civilized world. Russia will 'repay' the diesel with further terror and perfidy. Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged."

According to the Ukrainian president, the request is for mutual de-escalation rather than one-sided relief without concessions. Russia, he argued, should first be made to demonstrate some restraint before it is granted any economic advantage — not the other way around.

The deal stands in conflict with the U.S. policy of pushing for an energy ceasefire, under which Russia and Ukraine would halt all attacks on key energy sites. Ukraine appears open to the idea, especially with winter drawing near and its electricity infrastructure increasingly prone to attack. However, there is no publicized agreement obligating either party to stop attacking the other.

The Kremlin says Trump and Putin spoke for roughly 90 minutes as Ukrainian negotiators arrived in Miami for talks with American officials. Their conversation covered possible steps toward ending the Ukraine war, although Putin reportedly only promised to consider when talks might resume. The two leaders also discussed wider economic projects, including fuel, and Moscow's possible role in reaching a settlement with Iran. The Kremlin added that Trump wished Putin a happy birthday on the Russian leader's birthday the day before.

However, in Iowa, farmers struggling with skyrocketing diesel costs are focused on more immediate problems.