More than a month after President Donald Trump announced a surprise deal to import Russian diesel , the oil has struggled to reach the US market amid outrage and legal concerns.
Several oil tankers that departed from a key Russian oil-loading port — and are believed to be laden with diesel — are no longer bound for the US, according to ship tracking data from MarineTraffic, and US businesses and ports have steered clear of accepting Russian diesel for fear of legal and reputational risks, experts told CNN.
Bipartisan lawmakers and European allies expressed outrage at the agreement that Trump said he reached with Russian President Vladimir Putin to bring tens of thousands of barrels of Russian diesel into US and global markets. They condemned it as a concession to Russia as it continued its war against Ukraine and warned that those who imported the diesel could run afoul of international sanctions and US law.
One of the tankers, Agioi Fanendes , departed Russia with tens of thousands of barrels of Russian diesel. Its destination was listed as the Port of New York and New Jersey, and it was initially expected to arrive around November 7.
As of Sunday, the vessel was hovering hundreds of miles off the eastern coast of the US. It was officially broadcasting “FOR ORDERS” instead of a destination port. A spokesperson for Eastern Mediterranean Maritime Limited, the company that operates the tanker, told CNN on Thursday that its “discharging port is not confirmed yet.”
Several other oil tankers that departed Primorsk — one of Russia’s largest oil-loading ports — in mid-October have also shifted away from the US, according to data from MarineTraffic reviewed by CNN. One, the Talisman, docked at the Port of Alexandria in Egypt in recent days. Another, the Leruo, is now heading to Brazil. They had earlier declared their destinations as the US Atlantic coast. Both vessels are under European and British sanctions, and the Talisman is also sanctioned in the US.
A White House official told CNN on Wednesday that “consistent with the deal agreed to between President Trump and President Putin, Russian diesel is on the water and heading to the market, which will ease prices for Americans.”
The official did not say the diesel was heading to the US. The person said the deal “was made to add diesel supply to the global market — lowering prices for Americans and the world — which is exactly what will be done.”
Trump announced in a social media post on October 9 that he had reached a deal with Putin for Russia to “immediately supply over 300,000 Tons of Diesel Fuel to the American and Global Marketplace.”
The administration billed the deal, which was announced weeks before the US midterm elections amid steep fuel costs, as a way to lower prices for US consumers. Experts said the diesel would have little to no impact on prices, and amounts to less than a day of US energy consumption.
Last month, a group of bipartisan lawmakers sent letters to the CEOs of JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley, and the heads of Port Authorities of New York/New Jersey and of Houston, Corpus Christi and Beaumont, Texas, warning that they could face legal action if they are involved in importing the Russian diesel into the US.
The Ending Importation of Russian Oil Act of 2022 bans Russian-origin energy products, including diesel fuel, from being imported into the US “unless — following a period for consultation with Congress — the President certifies to Congress that Russia has ceased military hostilities in Ukraine, that Russia poses no immediate military threat to NATO members, and that Russia recognizes the right of Ukrainians to choose their government,” the lawmakers warned .
Although the US Treasury Department issued a sanctions waiver to allow the import of the diesel under the deal between the Trump administration and Moscow, the lawmakers consider that sanctions waiver to defy the law.
“Any importation of Russian diesel into the U.S. raises significant legal questions and may be subject to legal action, as well as congressional investigations,” wrote Democratic Sens. Jeanne Shaheen, Ron Wyden, Sheldon Whitehouse, Chris Coons, Elizabeth Warren, GOP Sen. Thom Tillis, and Democratic Rep. Gregory Meeks.
“Criminal penalties may apply to any company that knowingly buys Russian diesel or facilitates its importation, and not simply the importer of record,” they wrote.
New Jersey Gov. Mikie Sherrill warned her state’s port and terminal operators last week that “any effort to profit from the illegal trade in Russian fuel will be met with harsh penalties.”
Charles Lichfield, the director of economic foresight and analysis and the C. Boyden Gray senior fellow at the Atlantic Council’s GeoEconomics Center, noted that US importers would face “the immediate reputational risk” as well as the legal ramifications.
He noted that a general license from the Treasury Department, which allows businesses to import the diesel without fear of sanctions, would appear to be good protection but the 2022 law is still on the books, which raises questions about legality and the potential for prosecution down the line.
“All of this is very politically charged (and) the volumes are small,” he said. “You could make a few million dollars off this shipment, but is it really worth it?”
Julian Hayda, the associate director for advocacy at the organization Razom for Ukraine, noted that “now that Democrats have control of both chambers of Congress, they are most certainly going to launch investigations into these companies, so it’s not going to be worth it for many of these companies to buy this vehicle in and when it arrives on American shores.”
This story has been updated with additional information.
