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 shipment could lead to legal consequences and two tankers originally bound for the United States changed course.
Trump announced a deal with Russian President Vladimir Putin on Oct. 9 to immediately make more than 300,000 tons of Russian diesel available to U.S. and global markets, with larger shipments to follow. The United States banned Russian energy imports after the 2022 invasion of Ukraine, and the deal has angered some lawmakers and foreign allies.
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The deal has yet to result in confirmed delivery to the United States. Analysts said imports would likely do little to lower U.S. diesel prices, which hit record lows during the U.S.-Iran war.
Two sanctioned tankers that left the Baltic Sea port of Primorsk last month had initially declared their destination as the US east coast. By Thursday, the two had changed course, one to Brazil and the other to the Mediterranean, according to maritime data company Kpler and maritime traffic site MarineTraffic.com.
A third ship was still in the North Atlantic heading to the United States, but changed its destination from New York to “for orders”, which leaves the unloading point open. Neither the White House nor the Kremlin revealed whether the agreement was put in writing or revealed the price, payment terms or participating companies.
Although the Treasury Department has temporarily allowed transactions in Russian diesel that would normally be subject to U.S. sanctions, New Jersey Gov. Mikie Sherrill has advised her state’s port and terminal operators 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 severe sanctions.”
Sherrill argued that the Trump administration did not have the authority to override the import ban passed by Congress more than four years ago and said New Jersey would use its legal and regulatory powers to prevent facilities and businesses in the state from handling Russian fuel.
A bipartisan group of senators urged Trump to cancel the deal, saying the United States “should not provide Putin with a financial lifeline.” Lawmakers also warned big banks, port authorities and fuel distributors that facilitating imports could expose the companies to civil or criminal suits and future congressional investigations.
The administration maintains that its authorization was legal and no court has ruled on the dispute.
In response to a request for comment Thursday, the Treasury Department issued a statement saying its Office of Foreign Assets Control’s sanctions waiver for the sale, delivery, unloading and importation of Russian diesel through 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 shipments of Russian diesel en route would reduce pricing pressures for Americans. The official said the increased shipments were in line with Putin and Trump’s agreement, but did not say whether any Russian fuel would flow directly to the United States.
Expensive diesel can have broad economic consequences, including consumer prices, since the trucking industry and many farmers use the fuel to produce and transport goods.
Trump tried to blame Ukrainian President Volodymyr Zelensky for this year’s diesel price hikes. He pressed Ukraine to end drone attacks that have damaged Russian refineries and curbed fuel production.
The Financial Times was the first to report the diversions of the two sanctioned vessels, the Russian tanker Talisman and the Sierra Leonean-flagged Leruo.
Kpler analyst Matt Smith said it was unclear whether Russian diesel shipments had already found U.S. buyers and that the third largest tanker in the North Atlantic could also change course.
“Due to regulatory and sanctions issues, we may not see this cargo land on the Atlantic coast of the United States,” Smith said. “Clearly there is some hesitation about bringing these barrels ashore simply because of the implications that it entails.”
Kremlin spokesman Dmitry Peskov said no details were available on commercial shipments, but that “all diesel will find its buyers.”
Putin’s special envoy, Kirill Dmitriev, dismissed the Financial Times report.
“False. Tankers destined for the United States continue on their way,” Dmitriev posted on X.
Wiseman reported from Washington.
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