Trump Deal for More Than 300,000 Tons of Russian Diesel Faces Bipartisan Opposition
Key Facts
U.S. President Donald Trump's deal to supply more than 300,000 tons of Russian diesel faced opposition from Republicans and Democrats in the Senate after the Treasury Department issued a license allowing transactions involving the fuel. In his announcement on October 9, 2026, Trump said Russia had agreed to provide the volume immediately to U.S. and global markets, according to Reuters. Treasury's Office of Foreign Assets Control issued General License 135, authorizing transactions involving Russian-origin diesel. The authorization covers the sale, delivery, unloading and import of the fuel, according to the department's official announcement. The measure is part of the administration's efforts to lower diesel costs, but drew objections from lawmakers over the legality of allowing Russian energy imports and the decision's implications for Ukraine.
The deal's announcement coincided with the average U.S. diesel price reaching about $6.28 a gallon on Friday, October 9, according to the Associated Press, citing the American Automobile Association. The average was about $3.68 a gallon during the same period a year earlier, placing the administration's move against a backdrop of higher fuel costs compared with the previous year's level. The White House attributed tight supply to the war between Russia and Ukraine in explaining its reasons for taking action on diesel. It also cited a shortage of refining capacity worldwide as a cause of scarce supplies. The White House said the move aimed to lower diesel costs for American truck drivers and farmers, whom it singled out in announcing the measure.
The statement opposing the move included Republicans Susan Collins, Lisa Murkowski, Thom Tillis and John Curtis, alongside Democrats Richard Blumenthal, Ron Wyden and Jeanne Shaheen, according to the Senate Foreign Relations Committee. They cited legislation passed by Congress banning Russian energy imports, saying that allowing diesel imports conflicted with it. Their statement said "Congress explicitly banned Russian energy imports in 2022," the basis they presented for opposing the administration's decision. The lawmakers also said the administration had neither consulted Congress nor provided the legally required justification, linking their objections to concerns about financing Russia's war. In a separate criticism, Chuck Schumer, Shaheen and Elizabeth Warren described the decision as "a complete abandonment of Ukraine, our European allies and U.S. national security," according to a statement from the Democratic caucus.
Treasury Secretary Scott Bessent, meanwhile, defended implementing the deal, affirming the administration's commitment to using its available legal powers, Reuters reported. "We will implement this using all the legal authorities we have," Bessent said in response to the dispute over the move's legality. The deal also won support from Republican Senator John Barrasso, who defended the president's handling of the considerations surrounding the decision. Barrasso said "the president is balancing the considerations, and he has to make difficult decisions," offering support within the Republican Party, some of whose members joined the opposition. Trump himself stood by the deal in a social media post, saying: "I made the right choice for the American people; America First always," according to Reuters.
The Russian supply deal was preceded by another measure announced by the White House to address fuel costs, temporarily allowing dyed diesel intended for off-road use to be used on highways. The announcement included deferring the federal excise tax applicable to that use, according to the White House fact sheet. The federal diesel tax is 24.4 cents a gallon, according to the White House, which presented the tax relief as part of its measures to improve fuel affordability. The executive order on diesel provided for deferring tax amounts, to the extent permitted by law, without penalties, interest or additional amounts added to the tax. Implementation of the tax relief is thus proceeding alongside the Russian supply deal, through temporary permission to use dyed fuel and defer the tax due on it.
The Treasury license includes restrictions on debiting Russian entities' accounts at U.S. financial institutions, alongside its authorization of diesel transactions. The text excludes debits to accounts belonging to the Russian central bank, under the terms set out in the general license. The exclusion also covers accounts of Russia's National Wealth Fund at U.S. financial institutions. It extends to accounts belonging to the Russian Finance Ministry, completing the entities specified in the text under this restriction. Treasury set the expiration of the authorization for transactions involving the sale, delivery, unloading and import of Russian diesel at 12:01 a.m. Eastern Daylight Time on April 7, 2027, according to the deadline in the license text.