The short version
- Two tankers carrying Russian diesel changed course away from U.S. ports, while a third vessel remains in transit with an unspecified destination.
- New Jersey Governor Mikie Sherrill warned port operators that handling the fuel could result in severe penalties, citing congressional import bans.
- The Treasury Department maintains its sanctions exemption is lawful, despite bipartisan criticism and uncertainty regarding final delivery terms.
An executive agreement to import Russian diesel into the United States appears to be stalling as logistical hurdles and legal objections mount. Two tankers that departed from the Baltic Sea port of Primorsk last month originally listed U.S. East Coast destinations on their manifests. However, marine tracking data indicates both vessels have since altered their trajectories. One ship is now heading toward Brazil, while the other has entered Mediterranean waters. A third tanker remains in the North Atlantic, though it has updated its destination from New York to a generic status indicating it awaits further instructions.
The uncertainty surrounding these shipments follows an announcement by President Donald Trump on October 9 regarding a deal with Russian President Vladimir Putin. The arrangement purportedly makes more than 300,000 metric tons of Russian diesel available immediately to American and global markets, with larger volumes expected subsequently. This move reverses the U.S. ban on Russian energy imports that was enacted after Moscow’s invasion of Ukraine in 2022. Despite the announcement, no confirmed delivery of this fuel has reached American shores as of this week.
State and federal authorities have expressed significant concern regarding the implementation of the deal. New Jersey Governor Mikie Sherrill issued a directive to port and terminal operators within her jurisdiction, advising them to reject any vessels carrying Russian fuel. In a letter dated Monday, Sherrill warned that efforts to profit from what she characterized as illegal trade would face harsh penalties. She argued that the executive branch lacks the authority to override the import ban established by Congress more than four years ago and stated that New Jersey would utilize its regulatory powers to prevent state facilities from handling the fuel.
Legislative opposition has also intensified. A bipartisan group of senators has urged the administration to cancel the agreement, asserting that the United States should not provide financial support to the Russian government. Lawmakers have cautioned major banks, port authorities, and fuel distributors that facilitating these imports could expose their organizations to civil or criminal liability. There are also warnings of potential future congressional investigations into companies involved in the transaction.
The Trump administration maintains that its actions are lawful. The Treasury Department issued a statement clarifying that the sanctions exemption granted by the Office of Foreign Assets Control for the sale, delivery, unloading, and importing of Russian diesel until April 7 is consistent with previous administrative actions and complies with all applicable laws. No court has yet ruled on the dispute between the executive branch’s authorization and the congressional ban cited by critics.
An administration official, speaking on condition of anonymity, stated that en route shipments would help reduce price pressures for American consumers. The official noted that increasing fuel imports aligns with the agreement between Trump and Putin but did not specify whether any Russian fuel would reach the United States directly. Expensive diesel has broad economic implications, affecting consumer prices as the trucking industry and agricultural sectors rely on it to produce and transport goods.
Market analysts have expressed skepticism about the deal’s impact on domestic fuel costs. Experts note that imports are unlikely to significantly lower U.S. diesel prices, which have reached record highs partly due to the ongoing conflict between the United States and Iran. Matt Smith, an analyst at Kpler, indicated it is unclear if Russian diesel shipments have secured U.S. buyers. He suggested regulatory and sanctions concerns may prevent cargo from discharging on the U.S. Atlantic coast, highlighting hesitancy among industry players regarding the implications of bringing these barrels onshore.
The Kremlin has offered a different perspective on the situation. Spokesman Dmitry Peskov stated that while details about commercial shipments were not available, all diesel would find buyers. Kirill Dmitriev, Putin’s special envoy, dismissed reports of diverted tankers as false, posting on social media that vessels destined for the U.S. continue on course. Neither the White House nor the Kremlin has disclosed whether the agreement was formalized in writing or revealed specific details regarding price, payment terms, or participating companies.
President Trump has previously attributed this year’s diesel price spikes to Ukrainian President Volodymyr Zelenskyy. The administration has pressed Ukraine to halt drone attacks that damaged Russian refineries, arguing these strikes curbed fuel production and contributed to global supply constraints. As the situation develops, the interplay between executive authority, congressional mandates, and international sanctions remains a central point of contention.
The immediate future of these shipments remains uncertain. With two tankers already diverted and one in limbo, the practical outcome of the diplomatic agreement is yet to be determined. Industry stakeholders are likely to monitor legal developments closely before committing resources to handle potentially controversial cargo. The episode underscores the complex challenges of balancing energy security concerns with geopolitical sanctions and domestic political opposition.
Sources behind this briefing
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- PBS NewsHour↗Tankers carrying Russian diesel change course, raising doubts about shipments to U.S.
