Two Russian diesel tankers abandon US destinations as Trump's fuel deal falters - FT
Two tankers carrying Russian diesel have abandoned their declared US destinations, raising fresh doubts about President Donald Trump's controversial fuel deal with Vladimir Putin, the Financial Times reported on November 4.
The agreement, reached ahead of the November 3 midterm elections, was intended to ease a severe US diesel shortage and bring down fuel prices. However, American buyers appear reluctant to accept Russian shipments amid sanctions and legal concerns.
According to the FT, the Russian tanker Talisman, sanctioned by the US, UK and EU, and the Sierra Leone-flagged Leruo, sanctioned by the UK, EU and Canada, no longer list the US Atlantic coast as their destination.
Leruo changed its declared destination to Brazil on November 2, while Talisman turned away from the Atlantic and entered the Mediterranean Sea. It was last reported off Algeria, signaling that it was awaiting orders.
A third tanker, the Greek-owned Agioi Fanendes, was still heading toward the US but had not confirmed its final destination. It was expected to reach New York over the weekend.
Matt Smith, an analyst at shipping intelligence firm Kpler, told the FT that the apparent reluctance of US buyers, driven by regulatory, legislative and sanctions concerns, meant the third tanker could also change course.
Meanwhile, another sanctioned tanker, Beast, which loaded Russian diesel at the port of Primorsk on October 27, was also sailing toward the US Atlantic coast.
The shipments have faced political opposition in the United States. New Jersey Governor Mikie Sherrill warned port and terminal operators against accepting Russian diesel cargoes, citing the risk of severe penalties.
Trump announced the diesel agreement with Putin on October 9, after which the US Treasury issued a temporary license allowing Russian diesel to return to global markets.
The deal has faced criticism from both Democratic and Republican lawmakers, who questioned its legality.
The uncertainty comes as US diesel inventories have fallen below 100 million barrels for the first time in more than 20 years. Diesel futures have risen more than 60% since the start of the US war with Iran, while pump prices have reached $6.27 per gallon, according to the FT.
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