On October 12, 2023, Russia will send its first diesel tanker to the United States. This action follows an agreement between Vladimir Putin, the President of Russia, and Donald Trump, the President of the United States. Alexander Novak, the Deputy Prime Minister of Russia, announced this news at a press conference on Wednesday, mentioning that the weight of the diesel tanker is 40,000 tons.
Details of the Agreement
Novak also mentioned that additional shipments will be made in the future, and Russia will strive to meet the needs of the United States as much as possible. Putin has informed the U.S. representative, Steven Witkoff, that this tanker will depart within the next two to three days, after which other tankers will gradually be sent.
Export Forecast and Its Impacts
The Russian government suspended part of the diesel export ban on October 10, 2023, initially allowing the export of 500,000 tons of diesel to the global market. This decision was made under the agreement between Putin and Trump and indicates an increase in Russian exports to the United States. Trump announced on October 9 that Russia would soon send more than 300,000 tons of diesel to the United States, with expectations that this amount will increase to 500,000 tons in November and to 1 million tons in the following months.
According to Michelle Broughard from Kpler, the initial export of 300,000 tons will be equivalent to about 73,000 barrels per day for a month, which is unlikely to have a significant impact on global prices. While diesel prices in the United States have remained above $6 per gallon since September, Putin announced that global diesel prices have decreased by about 5 to 6 percent following this announcement.
Additionally, Putin has also stated that Russia can supply large quantities of chemical fertilizers to the U.S. market and will assist Washington in dealing with Iran. This comes as Ukraine has complained about disruptions in information exchange and restrictions on the use of the Starshield satellite system since the announcement of diesel exports.
In this context, Volodymyr Zelensky, the President of Ukraine, has announced that an agreement was signed with Witkoff in Oslo to address these issues. Meanwhile, recent Russian airstrikes on Ukraine have resulted in the deaths of four people, and energy facilities in Kyiv, Volyn, Odessa, and Mykolaiv have been damaged.
