Trump announced Friday that Russia will supply more than 300,000 tons of diesel immediately, followed by larger shipments through early next year. The Treasury Department authorized the deal through a temporary general license valid until April 7, allowing sanctioned Russian diesel transactions for roughly six months.
The agreement contradicts the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which Trump signed into law just three weeks prior. That bill empowers Trump to impose tariffs up to 100 percent on major purchasers of Russian crude oil or gas. Scott Lincicome, vice president of the libertarian Cato Institute, flagged the tension on X, asking rhetorically whether America can tariff itself.
Criticism crossed party lines. Sen. Richard Blumenthal, D-Connecticut, said Trump's move was "directly contrary to Congress's intent in our bipartisan sanctions bill." Rep. Michael McCaul, R-Texas, acknowledged understanding the desire to lower diesel prices but expressed concern that "lifting of sanctions on Russian oil will only fund the Kremlin's war machine, emboldening more violence and destruction."
Peter Harrell, visiting scholar at Georgetown University Law Center's Institute of International Economic Law, said the diesel relaxation "pretty much proves the point that the Graham Russia Bill was not going to force the Trump Administration to increase economic pressure on Moscow."
Trump justified the deal as necessary to reduce record-high diesel prices ahead of the midterm election. He described his discussion with Putin as "highly successful." The White House did not immediately respond to requests for comment.
Ukraine President Volodymyr Zelenskyy disputed the rationale. "Any easing of sanctions against Russia without a clear and lasting de-escalation agreement with Russia is an obvious weakness," he said. "Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged."
This represents a reversal from Trump's prior stance. Less than a year earlier, his administration sanctioned Russian oil companies, citing "Russia's lack of serious commitment to a peace process." In 2025 posts, Trump criticized NATO allies for buying Russian oil, arguing it weakened their negotiating position against Moscow.
Jeremy Siegel, professor emeritus of finance at Wharton, called the deal "a short-term Band Aid" and said eliminating sanctions on Russia for the Ukraine invasion is "very unfortunate."
Russia's response was positive. An account associated with Putin economic envoy Kirill Dmitriev said the cooperation "will benefit the world."