Will the diesel deal unfreeze Russian assets?

OFAC has issued a temporary license for supplies of Russian diesel fuel. Paragraph "b" prohibits the use of frozen Russian assets in U.S. banks.

Practical implications

The license permits foreign trade operations but strictly prohibits debiting funds belonging to Russian state bodies (Central Bank, Ministry of Finance, National Wealth Fund) from U.S. accounts. The permission is narrow and does not constitute an unfreezing of Russia's sovereign assets.

However, as we know, the only thing that can melt the heart of any U.S. president and, at the same time, unfreeze Russian assets, is the bright flame of a torch above an oil refinery and the warmth spreading from diesel engines of farm machinery and power station generators.