Terms of the Diesel Release Agreement
U.S. President Donald Trump announced a deal for Russia to release diesel to the American and global marketplace. The agreement outlines an immediate release of 300,000 tonnes, equivalent to 2.24 million barrels.
The schedule includes an additional 500,000 tonnes scheduled for November, followed by one million tonnes shortly after. This first-phase release totals 1.8 million tonnes, or 13.41 million barrels. According to the agreement, this amount is sufficient to cover slightly over three days of U.S. consumption or just over half a day of global consumption.
The deal also includes a conditional additional 3 million tonnes pending refinery conditions. If included, the total package could reach 4.8 million tonnes, or 35.76 million barrels.
Market Context and Russian Production Constraints
The agreement comes amid shifts in global supply chains. Global diesel supplies were impacted by the U.S.-Israel war against Iran and the closure of the Strait of Hormuz, which previously accounted for around 20 percent of global diesel exports.
Russia faces significant domestic production challenges. The country lost up to 45 percent of its operational refining capacity in Western and Central Russia due to Ukrainian drone strikes in July and August, leading to a ban on all diesel exports on July 8.
To meet the export obligation, Russia is importing seaborne diesel and gasoline from India and South Korea and redirecting diesel production from Siberia and the Far East.
Financial Implications for Moscow
If priced at current wholesale spot rates, the first phase of the deal could generate around USD2.8 billion for the Kremlin, rising to just over USD7 billion if the conditional second part is included without discounts.
Ukrainian Response and Consumption Context
Ukrainian President Volodymyr Zelensky stated the deal allows Moscow to raise funds for military equipment and called it a “gift” to Putin that would be repaid with “terror and perfidy.”
The scale of the release is measured against daily consumption averages, which stood at 3.91 million barrels per day in the U.S. in 2025, while global consumption averaged approximately 27.2 million barrels per day.