US Secures Major Diesel Supply Deal with Russia Despite Prior Sanctions; Additional Fuel Inflows Will Lower Prices Globally, Says President Donald Trump
WASHINGTON: The Trump administration has just made a huge deal to import big volumes of Russian diesel – a surprising shift in US energy policy.
In a major diplomatic move before the upcoming American midterm elections, President Trump opened up a new chapter in America’s relationship with his Russian counterpart, Vladimir Putin, after a favorable telephone call.
As part of the new deal, Russia will pump more than 300,000 metric tons of diesel immediately, then 500,000 tons for November and as many as 3 million tons based on refinery production.
Under this US-Russia Diesel Agreement and Energy Policy Change, there is immediate and scalable shipping of diesel.
Moscow will start sending over more than 300,000 tons of diesel, adding a much-needed supply to the energy market to alleviate the shortages in the country and abroad.
President Trump’s Stance on Relief: Price stabilization, President Trump said that the influx of Russian diesel will go a long way to bring down fuel prices for the common man – farmers, ranchers, and truck drivers – and urged domestic refineries and petroleum companies to do the same.
Strategic Waterways: The US president reaffirmed statements about full control of strategic waterways and copious oil transportation through the Strait of Hormuz.Diplomatic and Market Repercussions: The diplomatic and market repercussions of the policy shift have been severe, with the move attracting a lot of international and domestic attention and debate over compliance with sanctions.