The US Treasury Department issued a temporary license exempting Russian diesel exports from sanctions until April 2027 following bilateral talks, while Hurricane Isaias shut in over 71% of US Gulf oil output. Concurrently, Moscow initiated the immediate removal of domestic diesel export restrictions to alleviate acute global distillate shortages.
Global market
The US Treasury Department issued a temporary general license waiving sanctions on Russian diesel shipments until April 7, 2027, following bilateral discussions where US President Donald Trump and Russian President Vladimir Putin agreed on an immediate supply of 300,000 metric tons of diesel, scaling up to 3 million tons. The waiver follows acute shortages, as Energy Information Administration data showed US distillate stocks fell below 100 million barrels for the first time in over two decades. Compounding supply strains, Hurricane Isaias knocked out 71.5% of US Gulf crude output (1.46 million barrels per day) and 58.8% of gas production, forcing the evacuation of 129 offshore platforms. Meanwhile, the UK and Japan imposed new maritime sanctions targeting vessels operated by Russian shipping major Sovcomflot.
Russia & CIS
Russian Vice Prime Minister Alexander Novak announced that Russia has immediately begun lifting restrictions on diesel exports under the new trade arrangement. Russian Special Presidential Representative Kirill Dmitriev praised the bilateral cooperation as highly effective for global energy stability. However, a senior Ukrainian official told the Financial Times that Ukraine will continue long-range drone strikes against Russian oil refineries despite the agreement. In regional logistics, Saudi Arabia resumed full crude oil deliveries to European refineries via a primary pipeline, while Spain recorded zero imports of Russian LNG in September and October, marking the first complete halt since 2022.
Armenia
The temporary US sanction waiver on Russian diesel and Moscow’s subsequent export expansion establish a stabilizing outlook for fuel markets across the EAEU region, including Armenia. Despite severe weather disruptions curtailing US Gulf oil output and tightened maritime sanctions against Russian shipping, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas imports from Russia and continuous power generation at the Armenian Nuclear Power Plant proceed at full capacity under long-term EAEU trade agreements shielding the domestic market from global price shocks recorded by international market price assessments.