Russia and US in Talks on Diesel Supply Contract, Deputy PM Says

Russian Deputy Prime Minister Alexander Novak said the Russian and US energy ministries have started talks on a diesel supply contract, according to 观察者网. Novak said a contract needs to be signed and shipments secured, adding that the process will take time.

He said the two sides are working on ways to make Russian diesel exports to the US and international markets possible while Russian companies remain under sanctions, 观察者网 reports.

The talks follow a phone call between US President Donald Trump and Russian President Vladimir Putin on October 9. According to Trump's statement after the call, the two agreed Russia would immediately supply more than 300,000 tons of diesel to the US and global markets, with another 500,000 tons in November and a further 1 million tons shortly after. Trump also said Russia would supply 3 million tons of diesel within a short period, depending on the condition of its refineries.

The US Treasury issued a general license on October 9 permitting imports of Russian diesel, valid until April 7, 2027. The Associated Press described it as the first US sanctions exemption for Russian diesel lasting longer than the usual 30 days since the conflict in Ukraine began in 2022.

Novak also addressed Ukraine's recent intensified strikes on Russian refineries, which have affected energy supply and exports. He said repairs at some refineries inside Russia are complete and that supply conditions have improved noticeably compared with a month and two weeks earlier. Russia will restore and raise oil output as far as it can, he said.

What to watch next: whether the two energy ministries finalize a contract and when Russian diesel shipments to the US actually resume.