The first Russian diesel shipment under the deal between Moscow and President Donald Trump is on a tanker heading toward the US. New Jersey's governor now says she is weighing options to stop Russian diesel from reaching a port in her state.
The tanker Agioi Fanendes loaded 40,000 metric tons of ultra-low sulphur diesel at Russia's Baltic port of Primorsk on October 22, according to LSEG shipping data. It is expected to arrive in the US on November 7, and the identity of the buyer and seller was not immediately known.
Trump's deal targets soaring diesel prices
Trump announced the deal this month as part of his efforts to bring down soaring diesel prices ahead of the November 3 US midterm elections. He also waived parts of a new US sanctions law against Russia and threatened Europe with a US diesel export ban unless countries released more from their emergency reserves.
On October 9, Trump said Russia would immediately export 300,000 metric tons, followed by 500,000 tons in November. If the cargo arrives, it will be the first such import since Joe Biden announced a ban on Russian oil and petroleum products in 2022.
Destination remains unconfirmed
The tanker's manager, Eastern Mediterranean Maritime, said the vessel was awaiting orders while sailing toward the North Atlantic, and that its destination had not been determined as New York. The Financial Times reported that three tankers with about 140,000 tonnes combined are scheduled to arrive at American ports just days after the midterms. They are the first shipments licensed by US authorities under the deal.
Rapidan Energy Group, quoted by the FT, sees little buyer interest so far given legal, political and reputational risks, and said it would not be surprised if the cargoes ultimately head to Brazil.
New Jersey weighs a block
New Jersey Governor Mikie Sherrill told the FT: "Trump's diesel deal with Putin is corrupt and illegal", adding that she is evaluating options to stop it from arriving at a New Jersey port. It remains unclear what powers she has to block tankers.
Democrats allege that the Treasury's general licence is not legally valid because Congress signed the Ending Importation of Russian Oil Act in 2022.
Sources: Reuters via Investing.com, Financial Times
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