REAL ESTATE

Treasury issues OFAC license allowing Russian-origin diesel sales to U.S.; White House says it will lower diesel costs

On Oct. 9, 2026, the U.S. Treasury’s Office of Foreign Assets Control issued General License 135 authorizing transactions tied to Russian-origin diesel. The White House and President Trump said Russia would supply specified tonnages; senators and energy analysts warned the volumes may be too small to materially cut pump prices.

News BriefBy BusinessIndy News DeskCommentsPublished October 12, 2026 at 3:48 PM EDTLiving story · 2 sources

AI-generated illustration of the topic: Treasury issues OFAC license allowing Russian-origin diesel sales to U.S.; White House says it will lower diesel costs — AI illustration · Not a photograph of the reported event.

Treasury’s Office of Foreign Assets Control issued General License 135 on 2026-10-09, authorizing transactions related to Russian-origin diesel. President Trump said on Truth Social Russia would “immediately supply” 300,000 tons, add 500,000 tons in November and 1 million tons thereafter; a bipartisan group of six senators called on the administration to “immediately reverse course” (CBS News).

U.S. diesel prices have been elevated: CBS reported a national average record of $6.53 per gallon on Sept. 22 and $6.27 per gallon as of the Monday referenced in the article; California averaged $8.38 per gallon. Analysts cited in the story — including S&P Global Energy and independent market analysts — said the announced Russian volumes are unlikely to substantially lower U.S. pump prices (CBS News).

WHY IT MATTERS

What changed: On Oct. 9, 2026, Treasury’s Office of Foreign Assets Control (OFAC) issued General License 135, clearing a legal path for transactions involving Russian-origin diesel after the U.S. had banned Russian oil imports earlier in the war with Ukraine. The White House framed the move as a way to reduce diesel costs; President Trump posted projected shipment totals on Truth Social. Who this could affect: diesel powers trucks, buses and many farm machines; higher diesel often translates into higher costs for shipping and some goods. How it might work in practice: importing more diesel could increase available supply and, in theory, ease wholesale prices. But analysts cited in the reporting warned the additional volumes look small compared with overall demand. For context, analysts estimated world diesel consumption at roughly 3.5–4.0 million metric tons per day (about 500,000 metric tons in the U.S., per one analyst cited), while S&P Global Energy estimates U.S. diesel use at about 4.1 million barrels per day (roughly 170 million gallons). Experts quoted called the incremental Russian supply “isn’t massive,” noted Russia’s committed export volumes are within its current export range, and said any follow-through “might take the edge off of prices, but it will not substantially lower them” (CBS News). What to watch next: whether tankers actually arrive and when that supply reaches U.S. markets, how OFAC’s license is implemented in practice, any tariff or trade actions under the law the administration signed in September, and weekly wholesale and retail diesel-price data that would show whether additional supply is pushing down prices (CBS News; U.S. Treasury OFAC).

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Sources

Linked source published October 12, 2026 at 3:40 PM EDT. A sourced news brief; no independent staff reporting is implied. Prepared with AI assistance from the linked research; material claims remain attributed in the article.

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