Novak says diesel supply mechanism for US will be settled in contract talks

Russian and American negotiators must establish how diesel shipments can proceed while Russian companies remain under sanctions, Deputy Prime Minister Alexander Novak said on October 14.

Speaking to reporters at Russian Energy Week, Novak said supply contracts were being discussed with American counterparts and the US Department of Energy. He said the talks would produce an instrument allowing deliveries to take place.

The US Treasury has issued a temporary licence permitting Russian diesel supplies until April next year. However, Russian companies remain on the SDN sanctions list and are not explicitly named in the licence, according to Interfax.

The parties therefore still need to settle the practical mechanism for fulfilling contracts under the existing restrictions. Novak expressed confidence that they would resolve the issue but did not identify the instrument or say when it would be agreed.

The negotiations follow Vladimir Putin and Donald Trump's October 9 agreement on diesel supplies. Kommersant, citing TASS, also reported that contract discussions were continuing.