On October 9, 2026, President Trump said Russia agreed to supply more than 300,000 tons of diesel immediately, 500,000 tons in November, and 1 million tons soon after, with a further 3 million tons promised depending on refinery conditions. The Treasury Department issued OFAC General License 135 the same day, allowing Russian diesel sales and imports, including into the US, through April 7, 2027.
Diesel Supply Deal Between the US and Russia 2026 – Introduction
The diesel supply deal between the US and Russia surprised Washington, Kyiv, and the oil market on the same afternoon. Trump announced it on Truth Social after a call with Vladimir Putin that the Kremlin says lasted about an hour and a half. The US has banned Russian oil imports since 2022. Now a Treasury license allows Russian diesel to enter American ports. Diesel sits at about $6.27 a gallon, up roughly 70% since the Iran war began, and the midterm elections are on November 3.
The details are thin. Neither government has published a signed text, delivery schedule, or price. The volumes come from Trump’s post and from statements by Russian officials. This report separates what is confirmed from what is promised. It covers the announced tonnage, the OFAC license, Russia’s own diesel export ban, current US diesel prices and stocks, the G7 reserve release, and the reactions so far.
Interesting Facts about Diesel Supply Deal Between the US and Russia 2026
ANNOUNCED RUSSIAN DIESEL VOLUMES (THOUSAND METRIC TONS)
IMMEDIATE ██████████ 300
NOVEMBER ████████████████ 500
"IMMEDIATELY THEREAFTER" ████████████████████████████████ 1,000
CONDITIONAL ON REFINERIES ████████████████████████████████████████ 3,000| Fact | Data |
|---|---|
| Deal announced | October 9, 2026 |
| Immediate volume | More than 300,000 tons |
| November volume | 500,000 tons |
| Next tranche | 1,000,000 tons “immediately thereafter” |
| Conditional volume | 3,000,000 tons, depending on refinery conditions |
| OFAC license | General License 135, valid until April 7, 2027 |
| US retail diesel price (AAA, Oct. 9) | About $6.27 a gallon |
| US diesel price record (AAA, Sept. 22) | $6.5276 a gallon |
| Share of US diesel demand covered by the first two tranches | About 1.5 days (EIA comparison reported by CNN) |
The headline number depends on what you count. The named tranches add up to 1.8 million tons. Trump’s extra 3 million tons carries a condition about the state of Russian refineries, and CNBC’s headline total of more than 4 million tons includes it. About 7.45 barrels make a metric ton of diesel, so the named tranches equal roughly 13.4 million barrels. The conditional tranche would add about 22 million more. These conversions are ours.
Scale matters more than the headline. The Energy Information Administration says the first 800,000 tons equal about 6 million barrels, which covers about a day and a half of US diesel demand. The tons are also meant for the “American and global marketplace,” not only for US buyers. The deal eases supply at the margin. It does not replace the 800,000 barrels a day that Russia’s July export ban removed from the world market.
Diesel Supply Deal Volumes by Tranche in 2026
ANNOUNCED TRANCHES IN MILLION BARRELS (OUR CONVERSION AT 7.45 BBL PER TON)
TRANCHE 1 (300K T) ██ 2.2
TRANCHE 2 (500K T) ████ 3.7
TRANCHE 3 (1M T) ████████ 7.5
TRANCHE 4 (3M T) ████████████████████████ 22.4
| Tranche | Tons | Approx. Barrels | Timing |
|---|---|---|---|
| 1 | 300,000+ | 2.2 million | “Immediately” |
| 2 | 500,000 | 3.7 million | November 2026 |
| 3 | 1,000,000 | 7.5 million | “Immediately thereafter” |
| 4 | 3,000,000 | 22.4 million | Within a short period, depending on refineries |
| Named tranches (1 to 3) | 1,800,000 | 13.4 million | — |
| All four tranches | 4,800,000 | 35.8 million | — |
Data Source: Truth Social announcement of October 9, 2026, as reported by CNBC and Axios; conversion factor is standard for diesel
Trump listed the tranches, and the 3 million tons conditional on refineries, in his announcement. AP reports that Washington and Moscow offered few details, and no signed text or delivery schedule has surfaced. Russia’s Kremlin readout says only that Moscow is “ready to supply oil and oil products” to American and world markets. Kirill Dmitriev, Putin’s economic envoy, who worked on the deal, wrote that Russia-US cooperation on diesel and energy will benefit global markets.
Put the volumes in context. At roughly 4 million barrels a day of US diesel demand, a rate implied by the EIA comparison, the named tranches would cover about 3.4 days, and all four about 9 days. Against Russia’s own banned exports of about 800,000 barrels a day, the named tranches equal about 17 days of lost flow. Former US officials told CNN it is unclear whether Russia even has the diesel Trump cited. Delivery pace will decide whether the numbers matter.
OFAC General License 135 for Russian Diesel in 2026
GENERAL LICENSE 135: DURATION
ISSUED ██ October 9, 2026
EXPIRES ████████████████████████████████████████ April 7, 2027 (about 6 months)
| Term | Detail |
|---|---|
| License | OFAC General License 135 |
| Issued | October 9, 2026 |
| Authorizes | Sale, delivery, offloading, and importation of Russian-origin diesel, including into the US |
| Expires | 12:01 a.m. EDT, April 7, 2027 |
| Sanctions regimes cited | Russian Harmful Foreign Activities and Ukraine-/Russia-Related Sanctions Regulations |
| Exclusions | A defined category of financial operations is carved out |
| Related law | Graham Sanctioning Russia and Iran Act of 2026, signed September 18, 2026 |
Data Source: US Treasury Office of Foreign Assets Control, CNBC, NBC News, Diplomacy and Law analysis
General License 135 gives sanctioned trade a legal path for about six months. It does not end the broader Russia sanctions program. A general license is an exception inside the regime, and OFAC says so. Treasury itself described the step as easing sanctions on Russia. The text covers sale, delivery, offloading, and importation, and it names the US as a permitted destination. Treasury also carved out a defined set of financial operations, so some payment channels stay closed. Public details on eligible counterparties are still limited.
The license arrived three weeks after Trump signed the Graham Sanctioning Russia and Iran Act. The Senate passed it 86-11 on August 7, and the House passed it 262-159 in mid-September. The law allows tariffs of up to 100% on the top five buyers of Russian oil and gas. Sen. Richard Blumenthal, who co-sponsored it, says the deal makes the US complicit in Putin’s war. One legal analysis says the statute keeps Treasury’s power to issue new general licenses. Lawyers will keep arguing over how the two fit together.
Russia’s Diesel Export Ban and Refinery Capacity in 2026
RUSSIA'S DIESEL EXPORT BAN, 2026
EARLY JULY ██████████████ Ban begins after refinery strikes
SEPT 30 ████████████████████████████ Extended through end of October
OCT 31 ████████████████████████████████████████ Next decision point
EXPORTS REMOVED 800,000 barrels per day
| Metric | Figure |
|---|---|
| Russian diesel export ban start | Early July 2026 |
| Global supply removed by the ban | About 800,000 barrels a day |
| Ban extended on September 30 through | End of October 2026 |
| Reason given by Moscow | Domestic shortages and rising prices |
| Ukraine’s claim on Russian refining capacity offline | More than half (Ukrainian Ministry of Defence) |
| Kremlin claim for the domestic market | “Fully supplied” |
| Trump’s condition for the 3 million tons | “Condition of their diesel refineries” |
Data Source: CNN, AP, roic.ai, Al Jazeera, Ukrainian Ministry of Defence claims as reported
Russia banned diesel exports in early July after Ukrainian drone strikes on refineries caused fuel shortages at home. The ban removed about 800,000 barrels a day from global supply at a moment when the Iran war had already tightened it. On September 30, Moscow extended the ban for producers through the end of October. The ban covers producers, so the deal depends on Moscow relaxing it or granting an exemption. That decision is the first real test.
Refinery damage is the second test. Ukraine’s Ministry of Defence says its strikes have taken more than half of Russia’s refining capacity offline, a claim reported by Al Jazeera that this report cannot confirm independently. One analyst told AP the deal helps Russia, which wants to move summer-grade diesel before winter and Arctic grades take over. For a breakdown of who buys Russian oil today, see our Russian Oil Imports by Country report.
US Diesel Prices in 2026
US RETAIL DIESEL PRICE (AAA, $ PER GALLON)
FEB 9 (PRE-WAR) ████████████████ 3.69
SEP 22 (RECORD) ███████████████████████████████████ 6.53
OCT 4 █████████████████████████████ 6.34
OCT 9 ███████████████████████████ 6.27| Date | US Diesel Price per Gallon |
|---|---|
| February 9, 2026 (pre-war) | $3.69 |
| September 22, 2026 (record) | $6.5276 |
| October 4, 2026 | $6.34 |
| October 9, 2026 | $6.27 |
| Change since the Iran war began | +70% |
| EIA 2026 full-year average forecast (October outlook) | $5.19 |
| Diesel futures move on October 9 | -4% at the close |
Data Source: AAA, US Energy Information Administration, CNN, Al Jazeera, Admiral Markets summary of the EIA October outlook
Diesel peaked at $6.5276 a gallon on September 22 and has eased about 26 cents since, to $6.27 on October 9. That is still about 70% above the $3.69 of February 9, before the Iran war began. Diesel futures fell about 4% at Friday’s close after the announcement. The EIA’s October outlook expects a 2026 average of $5.19, a figure that includes the cheaper pre-war months. Diesel matters beyond trucks. It also moves farm costs, home heating, and consumer prices for goods shipped by road and rail.
The shortage sits in refined products. Market analysts report that the diesel crack spread, the margin between crude and diesel, hit a record $117.92 a barrel on September 16 while Brent traded near $105. Crude flows through the Strait of Hormuz have returned to about 13.5 million barrels a day, according to Kpler, but refined products moved only about 677,000 barrels a day against 3.6 million before the war. That gap explains why diesel stayed expensive when crude eased. Our Crude Oil Above $100 in US report tracks the crude side of the same crisis.
US Diesel Inventories and the G7 Reserve Release in 2026
US DISTILLATE STOCKS VS FIVE-YEAR AVERAGE
FIVE-YEAR AVERAGE ███████████████████████████████████ ~121 million barrels (implied)
WEEK TO OCT 2 ████████████████████████████ 105.1 million barrels
| Metric | Figure |
|---|---|
| US distillate stocks (week ending Oct. 2) | 105.1 million barrels |
| Gap to five-year average | 13% below |
| G7 coordinated release (announced Oct. 2) | 100 million barrels over four months |
| Implied daily release | About 820,000 barrels a day |
| Diesel share of the release | Front-loaded, “substantial” in the first 20 days |
| Part of the March plan still undelivered | About 75 to 100 million barrels |
| Goldman Sachs estimate of price relief | About half of the recent diesel price rise |
| Gasoil crack spread after the announcement | Narrowed from about $85 to about $70 a barrel |
Data Source: US Energy Information Administration weekly data, International Energy Agency, G7 leaders’ statement, Goldman Sachs, ING
US distillate stocks stood at 105.1 million barrels in the week ending October 2, 13% below the five-year average. The five-year average of about 121 million barrels is our implied figure from that gap. Stocks were still falling when the G7 acted on October 2. Its 100 million barrel release over four months works out to about 820,000 barrels a day, a figure that matches the size of Russia’s banned flow. Diesel comes first: the statement front-loads a “substantial” share into the first 20 days.
The release is less new than it sounds. Analysts say much of it finishes a March pledge. Of 426 million barrels pledged then, about 325 million were delivered by early October. Goldman Sachs estimates the release offsets only about half of the recent diesel price rise. The ICE gasoil crack narrowed from about $85 to about $70 a barrel in the days after the G7 decision. The Russian tonnage adds supply on top, but analysts say only a return of refined products from the Gulf fixes the shortage.
Reactions to the US-Russia Diesel Deal in 2026
PUBLIC POSITIONS AMONG THE SIX NAMED STAKEHOLDERS BELOW
SUPPORTIVE (TRUMP, KREMLIN, DMITRIEV, TREASURY) ████████████████████ 4
OPPOSED (ZELENSKYY, BLUMENTHAL) ██████████ 2
| Stakeholder | Position |
|---|---|
| President Trump | Says the US needs the diesel; the deal helps the “American and global marketplace” |
| Kremlin | Confirms Russia is “ready to supply oil and oil products” |
| Kirill Dmitriev | Says Russia-US energy cooperation will benefit global markets |
| Volodymyr Zelenskyy | Calls it a “weak decision” and says Russia will repay it with “further terror” |
| Sen. Richard Blumenthal | Says the deal makes the US “complicit” in Putin’s war |
| Treasury | Issued a temporary license “to allow the supply of Russian diesel to the global market” |
| Timing | Announced as US envoys met Ukrainian officials in Miami |
Data Source: Truth Social, Kremlin readout, Treasury statement, AP, Axios, Fortune
The reactions split along predictable lines. Trump framed the deal as a practical step on prices, saying the world needs the oil. The Kremlin and Dmitriev welcomed it. Zelenskyy called it a weak decision and said negotiators were being used as a smokescreen. He asked for de-escalation on a reciprocal basis. Blumenthal, a sponsor of the new sanctions law, said it makes the US complicit. The deal came as Steve Witkoff and Jared Kushner met Ukrainian officials in Miami to discuss ending the war.
The politics sit close to the pump. Diesel prices are near records three weeks before the November 3 congressional elections, and Republicans worry that higher energy costs lift other prices. The Kremlin says Putin and Trump both plan to attend the APEC summit in China in November. The questions to watch are practical: whether Russia relaxes its export ban after October 31, how many cargoes reach buyers, and whether Congress challenges the license. For the wider sanctions picture, see our US Sanctions Statistics report.
Frequently Asked Questions
What is the diesel supply deal between the US and Russia?
On October 9, 2026, President Trump said Russia would supply more than 300,000 tons of diesel immediately, 500,000 tons in November, 1 million tons soon after, and 3 million tons more depending on refinery conditions.
Will the US import Russian diesel in 2026?
Treasury’s General License 135 allows the sale, delivery, offloading, and importation of Russian-origin diesel, including into the US, through April 7, 2027. The deal says Russian diesel will go to the “American and global” market, so not all of it needs to land in the US.
How much diesel is 300,000 tons?
About 2.2 million barrels, using 7.45 barrels per ton. The first two tranches, 800,000 tons, equal about 6 million barrels, or roughly a day and a half of US demand, according to the EIA.
What is OFAC General License 135?
It is a Treasury license issued on October 9, 2026 that authorizes transactions in Russian-origin diesel until 12:01 a.m. EDT on April 7, 2027. It does not lift the broader sanctions on Russia.
Why is diesel so expensive in 2026?
The Iran war disrupted refined-product flows through the Strait of Hormuz. Russia banned diesel exports in July, removing about 800,000 barrels a day. US distillate stocks sit 13% below the five-year average. Diesel is up about 70% since the war began.
What is the current US diesel price?
AAA put the national average at about $6.27 a gallon on October 9, 2026, down from a record $6.5276 on September 22 and up from $3.69 in February.
Does the deal violate the new Russia sanctions law?
Critics say it conflicts with the Graham Sanctioning Russia and Iran Act of 2026. One legal analysis says the statute preserves Treasury’s authority to issue general licenses. The question is unsettled.
Can Russia actually deliver this much diesel?
Former US officials told CNN it is unclear. Russia banned diesel exports in July, extended the ban through October, and Ukraine says its strikes took more than half of Russian refining capacity offline. Moscow says its domestic market will be fully supplied.
When does the Russian diesel license expire?
General License 135 runs until 12:01 a.m. EDT on April 7, 2027, about six months after it was issued. Treasury can extend, change, or revoke it.
What else did Trump and Putin discuss?
The Kremlin says the call covered large-scale economic initiatives, including fuel supplies, and the war with Iran. Putin said Russia would consider when to resume peace talks, and both leaders are interested in attending the APEC summit in China in November.
What is the G7 oil release?
On October 2, 2026, the G7 agreed to release 100 million barrels of diesel and crude over four months through the IEA, with a “substantial” diesel share in the first 20 days.
Disclaimer: This research report is compiled from publicly available sources. While reasonable efforts have been made to ensure accuracy, no representation or warranty, express or implied, is given as to the completeness or reliability of the information. We accept no liability for any errors, omissions, losses, or damages of any kind arising from the use of this report.