UAE Judge Freezes $700 Million Tied to Russian Oil Traders, Filings Show, as Senators Press Trump to Drop Diesel Deal

Since Trump announced a diesel agreement with Vladimir Putin on Oct. 9, the deal has drawn objections from both parties in Congress, and on Oct. 18 Trump said he was holding off on new Russia sanctions and tariffs. A Wall Street Journal report published today, Oct. 26, adds detail on who actually moves Russian fuel.

What Trump promised

In an Oct. 9 Truth Social post, Trump said Russia would "immediately supply over 300,000 Tons of Diesel Fuel" to the American and global market. He said another 500,000 tons would follow in November and 1,000,000 tons right after that. He added that Russia would then deliver 3,000,000 tons "within a short period of time."

Trump said diesel prices would come down "IN RECORD NUMBERS, AND FAST," and called lower prices for farmers, ranchers and truckers his "Greatest Priority."

CNN reported that former U.S. officials say it is unclear Putin even has that much diesel to sell. The network also reported that energy analysts say the promised volume is unlikely to move global diesel prices much.

Congress pushes back

On Sunday, Oct. 11, seven senators released a joint statement asking the administration to "immediately reverse course." The Republicans were Susan Collins, Lisa Murkowski, Thom Tillis and John Curtis. The Democrats were Jeanne Shaheen, Richard Blumenthal and Ron Wyden.

They said Congress banned Russian energy imports in 2022 to keep American dollars from financing the war. In their words, Trump's decision "runs directly counter to that law." They also said the administration did not consult Congress or submit the justification the law requires.

Tillis, who is retiring after this term, told NBC's "Meet the Press" the deal risks "deadly consequences" by giving Putin the sense that the U.S. is easing off. He also said it is "tarnishing Lindsey Graham's efforts." CNN describes Graham as the late senator who spearheaded a bipartisan Russia sanctions bill passed last month.

In the House, Rep. Brian Fitzpatrick, R-Pa., said on Oct. 10 he would introduce bipartisan legislation, the "Ronald Reagan Peace Through Strength Act," to block any purchase of Russian oil. He said he would force it to the floor by discharge petition. Rep. Don Bacon, R-Neb., said he would be an original cosponsor. Bacon wrote that "propping up Putin's war economy is morally wrong as he uses that money to bomb cities."

Rep. Ashley Hinson, R-Iowa, a Senate candidate, was asked about the Russian sanctions waivers and said the focus should be on American fuels and refining.

The administration's defense

Treasury Secretary Scott Bessent said the administration is working within its legal authorities and its political mandate. He argued the diesel purchase is good for the American people.

Energy Secretary Chris Wright told CNN on Oct. 18 that Trump had suspended enforcement of the Graham sanctions law while keeping the authority to act later. Wright said the move gives Washington leverage with China and India, the two big buyers of Russian petroleum products. He called the diesel agreement "a carrot to try to end a war."

Trump gave his own reason on Oct. 18: "I am in the process of negotiating Peace in the war between Russia and Ukraine, and don't want to do anything that will drive, foolishly, Russia away from the bargaining table."

Ukrainian President Volodymyr Zelenskyy called the waiver a "historic mistake" and "big support" for Putin. He said the diesel deal is "very dangerous" and will do little for U.S. prices.

Where oil prices stand

Brent crude settled Oct. 16 at its highest level since May 19. On Oct. 19 it was down $1.34, or 1.22%, at $108.52 a barrel as of 6:02 a.m. ET. West Texas Intermediate was at $101.28.

The analytics firm Kpler said the diesel deal and the end of refinery maintenance season would likely push prices down in the near term. It also warned that Ukrainian attacks on Russian refineries add uncertainty to the arrangement.

Who moves Russia's oil

The Journal's report today centers on a lawsuit by Igor Soglayev, a former Deutsche Bank executive and former Russian energy industry insider. According to filings the Journal reviewed, he sued traders that Western officials call the Coral network. Western officials describe them as the most important middlemen letting Moscow sell oil despite sanctions.

Soglayev alleges he teamed up with the group in early 2024. He says the relationship soured after a tanker carrying tens of millions of dollars of diesel failed to deliver its cargo in Brazil. Russian diesel flows to Brazil, where it fuels haulage trucks. The two sides are fighting in courts in Brazil and the United Arab Emirates.

A UAE judge has issued a freezing order on more than $700 million in proceeds from sales of Russian energy by Soglayev's opponents, according to the filings. The court has not publicized the case. Soglayev told the Journal he believed he had received death threats. "I realized I had been screwed," he said.

The Journal reports that Coral, led by Etibar Eyyub and Tahir Garayev, struck a secret deal with state-backed Rosneft early in the war to export much of Russia's oil. It says the network now moves tens of billions of dollars of oil a year on tankers that make up most of Russia's shadow fleet. The U.K. and European Union have sanctioned both men and several associates. Eyyub said last year the sanctions were baseless and that he had done nothing unlawful. A lawyer for Garayev has said he has not been involved in petroleum operations since 2022.

No one has alleged that Coral is involved in the Trump-Putin diesel agreement. The Journal says Russia sells more than $150 billion of crude and fuel a year.

What comes next

November begins in six days, and Trump's own post set 500,000 tons as that month's delivery. Fitzpatrick's discharge-petition push is the next procedural test in the House. The administration has said it can reimpose the Graham law's penalties whenever it chooses.

A statute passed by Congress is on one side. A president who says he is using diesel as a carrot to end a war is on the other. Whether lawmakers force a vote is the open question.