US Treasury licenses sale and import of Russian diesel until April 7, 2027
In short
The US Treasury's Office of Foreign Assets Control (OFAC) issued a general license permitting the sale, delivery, unloading and import of Russian-origin diesel fuel, including imports into the United States. The authorisation runs until 12:01 a.m. Eastern Daylight Time on April 7, 2027. Vedomosti reported the license, No. 135, was signed by OFAC Director Bradley Smith on October 9 and does not permit transfers to accounts of the Russian central bank, the National Wealth Fund or the Russian Finance Ministry at US financial institutions.
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The US Treasury Department has issued a license permitting the sale, delivery, unloading and import of diesel fuel of Russian origin, including imports into the United States, Russian outlets reported on October 9. RIA Novosti quoted the document as authorising "all operations ... related to the sale, delivery, unloading or import of diesel fuel of Russian origin, including import into the US" until 12:01 a.m. Eastern Daylight Time on April 7, 2027. [ 1 , 4 , 5 ]
RBC and Vedomosti said the document was a general license from the Treasury's Office of Foreign Assets Control (OFAC). Vedomosti reported it was General License No. 135, published on the OFAC website, that it permits all transactions previously prohibited under sanctions against Russia that are connected with Russian-origin diesel, and that it was signed by OFAC Director Bradley Smith on October 9. TASS described the move as taking Russian diesel supplies to world markets out from under sanctions. [ 2 , 4 , 5 ]
According to Vedomosti, the license does not authorise the transfer of funds to accounts of the Central Bank of Russia, the National Wealth Fund or the Russian Finance Ministry at US financial institutions. The outlet noted that OFAC licenses for the supply of Russian goods have been issued in the past, that they do not change the nature of the sanctions regime and that they amount only to a temporary easing of restrictions. [ 5 ]
The license follows a statement by US President Donald Trump that he had reached an agreement with Russian President Vladimir Putin on supplies of Russian diesel. Vedomosti reported that Trump said he had held a successful conversation with Putin in which they agreed on the supply of more than 300,000 tonnes of diesel to the American and global markets, with a further 500,000 tonnes to be supplied in November and 1 million tonnes "immediately after that". Depending on the condition of Russian refineries, Trump said, Russia would supply an additional 3 million tonnes of diesel over some period of time. [ 1 , 5 ]
Trump also said that, thanks to US control of the Strait of Hormuz and the agreement with Russia, diesel prices for Americans and the whole world would fall at a record pace, Vedomosti reported. [ 5 ]
Why it matters
The license lifts, for a set period, sanctions restrictions on transactions involving Russian diesel on world markets and in the US. It follows a statement by US President Donald Trump that he and Russian President Vladimir Putin had agreed on supplies of more than 300,000 tonnes of Russian diesel to the US and global markets, with further volumes to follow, according to Vedomosti.
Key facts
- OFAC issued a general license permitting all transactions related to the sale, delivery, unloading or import of Russian-origin diesel fuel, including import into the US. [ 1 , 4 , 5 ]
- The authorisation is valid until 12:01 a.m. Eastern Daylight Time on April 7, 2027. [ 1 , 4 , 5 ]
- The document is General License No. 135, signed by OFAC Director Bradley Smith on October 9, Vedomosti reported. [ 5 ]
- The license does not authorise transfers of funds to accounts of the Central Bank of Russia, the National Wealth Fund or the Russian Finance Ministry at US financial institutions, Vedomosti reported. [ 5 ]
- Trump had earlier said he and Putin agreed on supplies of Russian diesel; Vedomosti cited him as saying more than 300,000 tonnes would go to the US and global markets, with 500,000 tonnes in November and 1 million tonnes immediately after. [ 1 , 5 ]
- Trump also said Russia would supply an additional 3 million tonnes over some time, depending on the state of Russian refineries, Vedomosti reported. [ 5 ]
Confirmed by several sources
Still unclear
- Whether the licensed deliveries are tied to the volumes Trump described after his call with Putin. Only Vedomosti links the license to Trump's statement, and the license text as quoted does not mention volumes.
- Details of the restriction on transfers to Russian state accounts and the signing by OFAC Director Bradley Smith. Reported by Vedomosti only.
What local media are saying
Timeline, local time
- RIA Novosti reports the US Treasury license permitting operations with Russian diesel until April 7, 2027. [ 1 ]
- TASS reports the US is removing Russian diesel supplies to world markets from sanctions. [ 2 ]
- RBC reports OFAC issued a general license covering sale, delivery, unloading and import of Russian diesel, including into the US. [ 4 ]
- Vedomosti reports General License No. 135 was signed by OFAC Director Bradley Smith on October 9 and excludes transfers to Russian state accounts. [ 5 ]