Russia increases diesel production after Trump deal – Reuters

The nation is already capable of supplying over 1 million tons of fuel to the global market per month, the news agency has said

Russia has significantly increased production of diesel in the wake of an agreement reached between Russian President Vladimir Putin and his American counterpart Donald Trump, Reuters has reported, citing industry sources.

Daily output rose from 160,000 tons in early October to 180,000 tons after the Russian government introduced new export quotas in mid-month, the agency said. Moscow has eased its restrictions on diesel exports, allowing Russian companies to ship up to 500,000 tons of fuel to international markets in October while ensuring domestic demand remains fully covered.

Exports of diesel, marine fuel, and gas oil had previously been banned until October 31 as the government sought to stabilize the domestic market, which had been suffering from increased seasonal demand linked to the harvest season.

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According to the sources cited by Reuters, domestic demand in Russia is now expected to fall to about 140,000 tons per day as the harvest campaign is largely over. This would free up as much as 40,000 tons of diesel per day or more than 1 million tons per month for export, according to the news agency’s estimates. Between 0.2 and 0.3 million tons are likely to be purchased by Russia’s neighbors, the sources said.

Trump and Putin agreed on diesel supplies during a phone call on October 9. Following the conversation, the US president announced that Russia would immediately supply more than 300,000 tons of diesel, followed by 500,000 tons in November, another million tons shortly thereafter, and potentially further shipments depending on refining capacity. Washington subsequently issued a temporary sanctions waiver permitting Russian diesel imports, reversing restrictions introduced under former US President Joe Biden in 2022.

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Last week, Deputy Prime Minister Alexander Novak noted that Moscow had already dispatched three tankers carrying diesel to the US under the agreement. He also announced that Russia would “ensure additional supplies of diesel fuel to world markets and the United States” to help ease the global diesel shortage. Deliveries would continue on a regular basis, Kremlin spokesman Dmitry Peskov also said at the time.

The diesel deal provoked tensions between Washington and Kiev. Trump has repeatedly urged Ukraine’s Vladimir Zelensky to stop attacking Russian refineries, accusing Kiev of exacerbating the worldwide diesel shortage and hurting American consumers and farmers hit by high fuel prices.

Zelensky hit back by blasting Trump’s claims as “totally false” and accusing the American leader of “deflecting the focus away from Iran.” He was referring to the American and Israeli military campaign against the Islamic Republic that, together with the Iranian response, led to severe shipment disruptions in the Strait of Hormuz – one of the key seaborne oil transportation routes.

Russia has historically been the world’s second-largest diesel exporter, behind only the US, accounting for roughly 10% of global exports. Disruptions to Russian supplies can drive up prices even in countries that do not directly import the fuel.