Trump announces deal with Russia to put more diesel on market, lower prices

THE ALASKA STORY

Oct. 9, 2026 – President Donald Trump said Friday he reached an agreement with Russian President Vladimir Putin to release millions of tons of diesel fuel into American and global markets, a move aimed at bringing down soaring fuel costs.

In an Oct. 9 Truth Social post, Trump said Russia would supply more than 300,000 tons immediately, another 500,000 tons during November, and 1 million tons shortly afterward.

Trump also announced a further 3 million tons, contingent on the condition of Russia’s diesel refineries. Taken together, the deliveries he outlined would exceed 4.8 million tons, although the timing of the final shipment remains conditional.

The Treasury Department said Friday it was immediately issuing a temporary license allowing Russian diesel to be supplied to global markets.

The announcement comes as diesel prices remain near record levels. The national average stood at $6.23 per gallon Friday, according to AAA figures reported by The Associated Press, after reaching a record $6.52 on Sept. 22.

For Alaska, diesel powers trucks, boats, barges, and construction equipment. Most remote Alaska villages also rely on diesel generators as their primary source of electricity, according to the US Energy Information Administration.  A sustained reduction in diesel prices could help ease costs for rural utilities, freight operators, and businesses whose fuel expenses ultimately reach Alaska consumers.

The agreement’s local impact will depend on how much additional fuel reaches the market and whether lower wholesale prices work their way through Alaska’s supply chain. Friday’s announcement did not establish a delivery schedule or price reduction for Alaska.

The move also represents a shift in Washington’s approach to Russian energy. The United States banned Russian petroleum imports following Moscow’s 2022 invasion of Ukraine. Treasury’s temporary authorization comes as the administration also faces implementation of a new sanctions law targeting Russia’s energy revenues.

Details about payment arrangements and when the first fuel would become available were not immediately provided by the White House.

For Alaskans heading into winter, the announcement offers the prospect of relief on a fuel that helps keep communities powered and goods moving.