FRANKFURT, Germany (AP) — President Donald Trump's plan to allow imports of Russian diesel appeared to falter this week after state and federal officials warned that handling any shipments could bring legal consequences and two tankers initially bound for the United States changed course.
Trump announced an agreement with Russian President Vladimir Putin on Oct. 9 to make more than 300,000 metric tons of Russia's diesel available immediately to U.S. and global markets, with larger shipments to follow. The U.S. banned Russian energy imports after the 2022 invasion of Ukraine, and the deal angered some lawmakers and foreign allies.
The arrangement has yet to produce a confirmed U.S. delivery. Analysts have said the imports were unlikely to do much to lower U.S. diesel prices, which have reached record highs during the U.S. war with Iran.
Two sanctioned tankers that departed from the Baltic Sea port of Primorsk last month originally declared their destinations as the U.S. East Coast. As of Thursday, both had changed course, one toward Brazil and the other into 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 U.S. but changed its destination from New York to “for orders,” which leaves the unloading point open. Neither the White House nor the Kremlin have disclosed whether the agreement was put in writing or revealed the price, payment terms or participating companies.
Although the Treasury Department temporarily authorized Russian diesel transactions that would ordinarily be subject to U.S. 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 U.S. “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 authorization 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 April 7 was consistent with previous actions and "in compliance with all applicable laws.”
A Trump administration official who was not authorized 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 U.S. 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 Zelenskyy 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 U.S. 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 U.S. 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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Wiseman reported from Washington.
