Russia-US Diesel Supply Agreement: Lavrov Reports Price Decrease
Russian Foreign Minister Sergei Lavrov announced that an agreement allowing Russia to resume diesel exports to the United States and global markets is now in effect. He stated that this arrangement has contributed to a decrease in diesel prices. Lavrov emphasized that Russia does not leverage its economy for political gain against perceived adversaries.
In an article published in the Moscow daily Kommersant, Lavrov highlighted the significance of the agreement, which he claims is vital for energy security. He noted that since 2022, Russia has supplied Europe with energy resources valued at $320 billion. The deal, announced by US President Donald Trump on October 9, allows Russia to export 300,000 metric tonnes of diesel immediately, with additional shipments planned for November and beyond.
US-bound shipments face uncertainty
While Lavrov asserted that the agreement has lowered diesel prices, he did not provide specific figures to support this claim. US diesel futures have reportedly fallen by about 11% since the announcement, although prices at US pumps reached record highs during the recent elections. There are concerns regarding the actual delivery of Russian fuel to the US, as two sanctioned tankers altered their routes, and a third vessel changed its destination to “for orders.”
Analysts have raised questions about whether the shipments will reach American ports due to regulatory and sanctions-related issues. New Jersey Governor Mikie Sherrill has advised port operators to reject Russian fuel shipments, warning of potential legal repercussions. A bipartisan group of US senators has also urged Trump to reconsider the arrangement, citing concerns over financial support to Moscow. The US Treasury Department, however, stated that its temporary authorization for Russian diesel transactions complies with existing laws.
Lavrov raises Ukraine strikes on Russian energy infrastructure
In his article, Lavrov also addressed the ongoing conflict with Ukraine, accusing it of disregarding calls to cease attacks on Russian energy infrastructure. Ukrainian President Volodymyr Zelenskyy confirmed that Ukrainian forces continue their strikes. Reports indicate that fuel shortages have emerged in several Russian regions following attacks on major oil refineries in recent weeks.
