Russian Diesel Fuel Deliveries to US Market to Begin Within 15–20 Days After Contracts, Novak Says

Moscow, The Gulf Observer: Russian diesel fuel deliveries to the United States could begin within 15 to 20 days after commercial contracts are signed, Russian Deputy Prime Minister Alexander Novak has said.

In an interview with Vesti on Sunday, Novak said the US Department of Energy had identified companies that would act as counterparties and buyers of Russian diesel fuel. Negotiations are currently underway to finalise commercial terms and conclude the contracts.

“Once the contracts are signed, the fuel will be delivered to the US market within 15–20 days,” Novak said, adding that deliveries to other, geographically closer international markets would take less time.

According to Novak, the Russian government lifted restrictions on diesel fuel exports the day after a telephone conversation and an agreement between Russian President Vladimir Putin and US President Donald Trump.

He said Russia planned to increase diesel fuel production and exports in line with the arrangements agreed upon by the two presidents.

Russia aims to supply 500,000 tonnes of diesel fuel to international markets in October, followed by one million tonnes in November and another one million tonnes in December.

Novak said that if Russian oil refineries returned to operating at full capacity, as they had previously, the country could supply a total of 3.5 million tonnes of diesel fuel to global markets by the end of the year. He described this volume as nearly 10 per cent of the global market.

The deputy prime minister also noted that active coordination was underway between Russia’s Ministry of Energy and the US Department of Energy, while Russian exporting companies were maintaining direct contact with prospective buyers.

The planned deliveries mark a potential development in energy trade between Moscow and Washington, with the implementation and timing of supplies dependent on the conclusion of commercial agreements and the operational capacity of Russian refineries.