The Russian diesel deal reveals how US sanctions combine sweeping restrictions with exceptions that serve Washington’s interests
By Ivan Timofeev, programme director of the Valdai Club
The agreement to supply Russian diesel fuel to the United States has made a considerable political impact, and it comes amid another escalation of the Ukraine conflict during which both sides have been exchanging large-scale missile and drone strikes.
Meanwhile, the European Union has approved its 22nd package of sanctions against Russia, while Washington has adopted another round of punitive measures under the so-called Hellish Sanctions Act.
Yet against this backdrop, the US Treasury has issued a general license authorizing transactions involving the sale, delivery, unloading and import of Russian diesel fuel until April 2027, which, at first glance, appears extraordinary.
In reality, however, such exemptions are a familiar feature of American sanctions policy as they illustrate a fundamental paradox of the US system: exceptionally severe restrictions coexist with considerable flexibility when Washington’s own interests are at stake.
On one hand, sanctions against Russia, particularly those targeting its energy sector, have become increasingly entrenched, and the latest legislation makes their removal considerably more difficult, adding to an extensive framework of federal laws, presidential orders and administrative regulations accumulated over recent years.
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