US-Russia energy deal opens up diesel can of worms
US President Donald Trump announced that Russia will supply diesel to global markets, and Washington agreed to lift sanctions on the Kremlin in a bid to bring down energy prices, especially for diesel. Analysts at Quantum Strategy and Geonomics said the volumes Mr Trump cited will not work, amounting to 60 per cent, 100 per cent and 200 per cent of Russia's diesel exports, and noted that Ukrainian strikes have taken out more than half of Russia's refining capacity, according to Kyiv's defence ministry. Ukraine's President Volodymyr Zelenskyy said allowing Russia to sell its petroleum products is an investment in war, and Washington imposed further sanctions on the International Criminal Court on the same day former ICC judge Navanethem Pillay was awarded the Nobel Peace Prize.
Why it matters: The arrangement ties sanctions relief to energy security, as analysts question whether Russia can supply the diesel volumes while its refining capacity remains damaged.