Donald Trump's plan to allow Russian diesel imports appeared to falter this week after state and federal officials warned that handling any shipments could bring legal repercussions and two tankers initially bound for the US changed course.
Trump announced an agreement with President Vladimir Putin on 9 October to make over 300,000 metric tonnes of diesel available immediately to US and global markets, with larger shipments to follow. The US banned Russian energy imports after the invasion of Ukraine in 2022, and the deal angered some lawmakers and foreign allies.
The arrangement has yet to produce a confirmed US delivery. Analysts have suggested the imports were unlikely to do much to reduce US diesel prices, which have reached record highs during the Iran war.
Two sanctioned tankers that departed the Baltic port of Primorsk last month originally declared destinations on the US East Coast. By Thursday, both had altered course towards Brazil and the Mediterranean, according to marine data company Kpler and vessel traffic site MarineTraffic.com.
A third vessel was still in the North Atlantic headed toward the US but changed its destination from New York to “for orders,” leaving the unloading location open. Neither the White House nor the Kremlin has disclosed whether the agreement was put in writing, nor revealed prices, payment terms or participating companies.
Although the Treasury Department temporarily authorised Russian diesel transactions that would ordinarily be subject to US sanctions, New Jersey Gov. Mikie Sherrill advised port and terminal operators in her state to turn away ships carrying the fuel, warning in a letter dated Monday that “any effort to profit from the illegal trade in Russian fuel will be met with harsh penalties.”
Sherrill argued that the Trump administration lacked authority to override the import ban enacted by Congress more than four years ago and said New Jersey would use its legal and regulatory powers to prevent state facilities and companies from handling Russian fuel.
A bipartisan group of senators has urged Trump to negate the deal, saying the US “should not provide Putin with a financial lifeline.” Lawmakers also have warned major banks, port authorities and fuel distributors that facilitating the imports could expose companies to civil or criminal liability and future congressional investigations.
The administration maintains its authorisation was lawful, and no court has ruled on the dispute.
In response to a request for comment Thursday, the Treasury Department issued a statement saying the sanctions exemption its Office of Foreign Assets Control issued for the sale, delivery, unloading and importing of Russian diesel until 7 April was consistent with previous actions and "in compliance with all applicable laws.”
A Trump administration official who was not authorised to comment publicly and spoke on condition of anonymity said en route Russian diesel shipments would reduce price pressures for Americans. The official said increasing shipments was in keeping with Putin and Trump’s agreement but did not specify whether any Russian fuel would reach the US directly.
Expensive diesel can have wide-ranging economic effects, including on consumer prices, since the trucking industry and many farmers use the fuel to produce and transport goods.
Trump has tried blaming Ukrainian President Volodymyr Zelensky for this year's diesel spikes. He has pressed Ukraine to halt drone attacks that damaged Russian refineries and curbed production of the fuel.
The Financial Times first reported the diverted courses of the two sanctioned vessels, the Russian tanker Talisman and the Sierra Leone-flagged Leruo.
Kpler analyst Matt Smith said it was not clear if Russian diesel shipments had US buyers yet and that the third tanker in the North Atlantic also might change course.
“Because of regulatory, sanctions concerns, we may not see this cargo discharge on the US Atlantic coast,” Smith said. “It’s clear there’s hesitancy here in bringing these barrels onshore just because of the implications of doing so.”
Kremlin spokesman Dmitry Peskov said details were not available about commercial shipments but that “all the diesel will find its buyers.”
Putin’s special envoy, Kirill Dmitriev, dismissed the Financial Times report.
“Fake. Tankers destined for the US continue on course,” Dmitriev posted on X.
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