Trump risks giving Russia billions for a dubious result
The Trump administration plans to purchase up to 4.8 million tons of diesel fuel from Russia to curb prices ahead of the Congressional elections. Economists doubt the deal's effectiveness: the volume is equivalent to less than ten days of U.S. consumption. Moscow could earn about $6.7 billion in revenue, strengthening its economy amid the war against Ukraine. Ukrainian strikes have damaged Russian refineries, raising questions about meeting obligations.
The administration of U.S. President Donald Trump is considering a large-scale purchase of Russian diesel fuel — up to 4.8 million tons — in an attempt to curb rising prices at American gas stations ahead of the Congressional elections. The first batch of 300,000 tons is planned for October. Economists, including Clemens Fuest, president of the Munich ifo Institute for Economic Research, doubt that the agreement will significantly reduce fuel costs: the entire stated volume corresponds to less than ten days of U.S. consumption. Meanwhile, Moscow could potentially earn about $6.7 billion in gross revenue, gaining additional financial resources amid the war against Ukraine. It remains an open question whether Russia can fulfill its obligations: Ukrainian strikes have caused serious damage to Russian oil refineries, and Russia itself faces a fuel shortage. Germany has reacted to the initiative: a representative of Chancellor Friedrich Merz, Stefan Cornelius, emphasized that Berlin and European partners maintain sanctions against Russia and continue preparing new restrictions. According to Fuest's assessment, implementing the agreement could strengthen Russia and weaken Ukraine's position.