US-Russia ‘diesel deal’ could open door to wider sanctions relief, Zelensky warns as EU vows to keep supporting Ukraine

by · EUobserver

“We cannot treat the agreements concerning diesel and coal as isolated cases … gas could be next. I am absolutely convinced of that,” Zelensky told reporters in Brussels, after meeting with EU leaders (Source: EPA/OLIVIER MATTHYS)

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By Petra Pavlovičová and Elena Sánchez Nicolás,
Brussels
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Ukrainian president Volodymyr Zelensky said on Friday (16 October) that the US-Russia ‘diesel deal’ came as a surprise and could lead to further sanctions relief for Moscow.

“We cannot treat the agreements concerning diesel and coal as isolated cases … gas could be next. I am absolutely convinced of that,” Zelensky told reporters in Brussels, after meeting with EU leaders. 

“The risks I am talking about are clear: sanctions could be progressively eased,” he warned.

EU leaders are expected to “regret” the diesel deal in their summit conclusions, while discussions on a new package of sanctions against Russia are still underway.

“It is not a time to release sanctions on Russia,” said EU Council president Antonio Costa on Friday, alongside EU Commission president Ursula von der Leyen and Zelensky before the discussion with EU leaders.

“We will not lift any sanctions unless Russia ends the war,” confirmed von der Leyen, adding that Europe will keep working on “pressuring Russia”.

Europe has adopted 21 packages of sanctions on Russia since the beginning of the war, alongside the listing of thousands of individuals and entities, and is currently working on the 22nd.

But one Ukrainian senior diplomat told EUobserver that the coming months could be crucial to agree on more sanctions against Moscow, since February is seen as a possible deadline given the upcoming 2027 French presidential elections.

Russia’s economy has come under growing pressure from Western sanctions. Although a month-on-month decrease in exports was observed (six percent for fossil fuels, eight percent for crude oil), the US diesel deal could offer Moscow a potential lifeline. 

No concessions

The diesel deal is widely seen as a way to restart peace talks. At the same time, the United States is pushing Kyiv and Moscow toward a negotiated settlement, which puts Ukraine under growing pressure to come to the table, even though any deal could force it to make painful concessions.

Zelensky, however, has warned against any deal that would compromise Ukraine’s sovereignty or territorial integrity.

"Putin plans to stick around much longer. He is building a Russia that looks like North Korea," he wrote on X.

Instead, the Ukrainian president has turned to European “real leaders”, seeking to shore up their political and military support and strengthen Kyiv’s position in any future negotiations. 

And in the words of von der Leyen, Europe is already helping Ukraine to prepare for “winter-isation”, which for Zelensky should translate into more funds and defence support.

This week, the commission disembursed €2.9bn to Kyiv to purchase drones, air defence systems, missiles, radars, electronic warfare systems and ammunition, as part of the EU’s €90bn loan, backed by EU leaders last year. 

But Kyiv has warned it will need tens of billions more to continue fighting against Russia, as the war intensifies on the front lines and the number of attacks in Ukrainian cities increases.

Ukraine’s defence needs are estimated for 2026 around €23bn and Kyiv still needs to fund a hole of roughly €69.3bn for 2027.

“We will have to increase the funding once again,” German chancellor Friedrich Merz said on Thursday before meeting EU leaders in Brussels. 

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"We cannot treat the agreements concerning diesel and coal as isolated cases … gas could be next. I am absolutely convinced of that,” Zelensky told reporters in Brussels, after meeting with EU leaders (Source: EPA/OLIVIER MATTHYS)

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Author Bio

Petra Pavlovičová is a reporter at EUobserver. She studied Political Sciences and Journalism in Brussels. She worked and gathered experience in Belgian daily press Le Soir, Slovak redaction of Dennik SME and in the Investigative Center of Jan Kuciak in Bratislava.

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Elena Sánchez Nicolás is EUobserver's editor-in-chief. She joined EUobserver in 2019.

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