Germany's Merz rejects Trump’s Russian diesel deal: How deep is the split? | DW News

Overview

The report examines tensions between Washington and its European allies after President Donald Trump announced a deal to buy Russian diesel, saying it could help lower US fuel prices ahead of the midterm elections. German Chancellor Friedrich Merz rejected the idea of Europe following suit, arguing that Russia will negotiate seriously only under pressure and that sanctions should remain in place.

European Response

DW correspondent Simon Young said Berlin is frustrated that the deal could put money into Russian coffers and prolong the war. However, Germany is likely to avoid turning the disagreement into a broader dispute with the United States, given the importance of the transatlantic security, defense and economic relationship.

Opposition is not limited to Germany. European governments have criticized the deal, the EU has expanded its sanctions list, and Poland’s prime minister has urged Western countries to stand firm with Ukraine.

Potential Impact of the Diesel Deal

Energy analyst Olga Khakova said the deal is too small to meaningfully affect global markets or US prices. She described it as politically significant, however, because it tests reactions to renewed US engagement with Russia.

Khakova also said Russia may lack the capacity to sustain deliveries. Attacks on Russian refineries and domestic supply pressures have constrained exports. Any additional shipments, she suggested, could come at the expense of Russia’s own needs rather than provide a reliable long-term supply.

Sanctions and Enforcement

Khakova said sanctions’ effectiveness depends not only on their scope but also on coordinated enforcement. She cited joint US-European action against Russia’s “shadow fleet” as an example of coordination having greater impact.

She also pointed to proposed sanctions associated with Senator Lindsey Graham—including possible tariffs on countries buying Russian oil and gas, and action against the shadow fleet—as potential tools. She noted, however, that the US president has considerable discretion over implementation.

Addressing High Energy Prices

Khakova said there is no quick fix for high energy prices. She advocated:

• Better connections and infrastructure across European energy markets
• Investment in a range of energy sources
• Improved efficiency and transmission
• Faster permitting for new capacity

She stressed that balancing affordable energy, secure supplies and local concerns is a challenge on both sides of the Atlantic.

The US-European Relationship

Young described Berlin’s approach as cautious. Khakova said the partnership has changed and is unlikely to return to what it was several years ago.

She argued that reducing Russia’s energy revenues also serves wider security interests, given Russia’s cooperation with Iran, and that coordinated US-European efforts could still provide a path forward. The timing and extent of any US sanctions implementation remain uncertain.

Presenters and Contributors

• Brent (host; surname not given in the subtitles)
• Simon Young (DW political correspondent)
• Olga Khakova (Center for European Policy Analysis)