HomeBusinessRussia-US diesel deal delivers results? Lavrov claims prices have already fallen

Russia-US diesel deal delivers results? Lavrov claims prices have already fallen

Russia hails diesel deal with US (representative image)

Russian foreign minister Sergei Lavrov has said an agreement allowing Russia to resume diesel exports to the United States and global markets is already being implemented and has helped bring prices down.In an article published in Moscow daily Kommersant on Tuesday, Lavrov said the arrangement was an important contribution to energy security. He also argued that Russia did not use its economy to score political points against countries it considered adversaries or competitors.“Since 2022, we have supplied Europe with energy resources worth $320 billion,” Lavrov wrote.“An important contribution to energy security was the agreement between the Russian and US leaders to suspend restrictions on the export of Russian diesel. We have already started implementing it, which immediately brought prices down.”US President Donald Trump announced the deal on October 9. Under the arrangement, Russia agreed to make 300,000 metric tonnes, or 2.25 million barrels, of diesel available immediately to the US and global markets, followed by 500,000 tonnes in November and a further 1 million tonnes “immediately thereafter”.The Trump administration temporarily lifted US sanctions on Russian fuel to facilitate the exports.The move came as the US president sought to bring down fuel prices ahead of the November 3 midterm elections, which his Republican Party lost.

US-bound shipments face uncertainty

Lavrov did not provide figures to support his claim that the agreement had lowered diesel prices.US diesel futures have fallen about 11% since the deal was announced, according to Reuters.However, diesel prices at US pumps were at a record high last week when Americans voted, according to price tracker GasBuddy.The arrangement has also faced uncertainty over whether Russian fuel would reach the US.Two sanctioned tankers that had initially declared destinations on the US East Coast changed course, while a third vessel travelling across the North Atlantic changed its destination from New York to “for orders”, according to news agency AP.The report said the proposed imports had yet to result in a confirmed US delivery. Analysts also questioned whether the shipments would reach American ports, citing regulatory and sanctions-related concerns.New Jersey Governor Mikie Sherrill had advised port and terminal operators in the state to reject Russian fuel shipments, warning of possible legal consequences. A bipartisan group of US senators also urged Trump to abandon the arrangement, arguing that it could provide financial support to Moscow.The US Treasury Department, however, maintained that its temporary authorisation for Russian diesel transactions was consistent with previous actions and “in compliance with all applicable laws”.The exemption was issued for the sale, delivery, unloading and import of Russian diesel until April 7.Separately, Russian deputy foreign minister Alexander Pankin said on Monday that the diesel arrangement could provide an opportunity for the gradual restoration of business and other ties between Moscow and Washington.He told the TASS state news agency that the deal could “serve as a foundation for the gradual restoration of business and other ties between our countries”.

Lavrov raises Ukraine strikes on Russian energy infrastructure

In his Kommersant article, Lavrov said Russia was working to stabilise global energy markets and ensure energy security, as well as the balanced and sustainable development of countries and regions.He also accused Ukraine of ignoring Trump’s calls to stop attacks on Russian energy infrastructure.Ukrainian President Volodymyr Zelenskyy said last week that Kyiv’s forces were continuing their strikes.Russian media have reported that fuel shortages have returned in at least half a dozen Russian regions following Ukrainian attacks on at least eight major oil refineries over the past two weeks.

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