U.S.–Russia Diesel Deal Benefits All Parties, Novak Says

Dragon Media Newsroom

Russian Deputy Prime Minister Alexander Novak said the diesel supply agreement between the United States and Russia would benefit all market participants. Speaking at a plenary session of Russian Energy Week, he said criticism from the European Union ran counter to the interests of European consumers.

According to Novak, the global market is facing a diesel shortage equivalent to about 25% of total international trade. He said the shortage had worsened because supplies from the Gulf to external markets had been disrupted and Russia had halted exports in July while prioritizing its domestic market. He also said diesel was priced at about $200 per barrel, with the price gap between diesel and crude oil widening.

Describing Russia as a reliable energy supplier to global markets, Novak said it was ready to provide additional energy to Europe under long-term contracts. According to him, Russia has supplied Europe with energy worth $320 billion since 2022. He said the value of those supplies reached $21.3 billion in the first nine months of 2026 alone. He added that some gas contracts remain in force through 2035 to 2040.

Novak said Europe had rejected affordable and stable energy supplies from Russia for political reasons, and that European industries and consumers were bearing the consequences. According to him, some industries had relocated to other countries, while some businesses had closed.

Novak said international cooperation, rather than unilateral measures, was needed to address price pressures and supply disruptions in global energy markets. He said Russia was ready to help balance energy markets and contribute to global energy security through long-term partnerships.