Trump administration pressures US firms to accept Russian diesel, but buyers resist - Washington Sun

The Trump administration is privately urging American companies to accept shipments of Russian diesel heading toward US ports, but potential buyers are refusing over legal and reputational concerns, The Washington Sun reported on October 29, citing industry officials and analysts.
At least three tankers carrying Russian fuel departed for the United States in mid-October after President Donald Trump issued an executive order on October 16 waiving sanctions on Russian diesel. However, the shipments reportedly had no confirmed buyers even when the vessels were loaded.
"They're being very strongly encouraged by both Moscow and Washington to take these cargoes, including with steep discounts, but they're encountering a wall of resistance based on reputation and legal risks," one industry analyst told the newspaper.
The Malta-flagged tanker Agioi Fanendes, carrying approximately 40,000 metric tons of diesel, was initially expected to arrive at the Port of New York and New Jersey on November 7. Its listed destination has since changed to "for orders," indicating that its next port of call remains undecided.
Industry analysts believe the tankers could ultimately divert to Brazil, which has purchased substantial quantities of Russian diesel since the start of Moscow's full-scale invasion of Ukraine.
The uncertainty stems partly from a dispute over the legality of Trump's sanctions waiver. Congressional Democrats argue that the executive order conflicts with sanctions legislation, including a bipartisan law Trump signed just three weeks earlier.
"Any company or individual thinking about purchasing Russian diesel should be aware that they're committing a crime and that Congress is watching," Democratic Senator Richard Blumenthal told The Washington Sun.
Blumenthal has demanded that the owners of two tankers, Agioi Fanendes and PVT Azura, reverse course rather than deliver their cargoes to American ports.
New Jersey Governor Mikie Sherrill also said she was examining ways to prevent Russian diesel from arriving in her state's ports.
The White House referred questions to the Treasury Department, whose representative defended the waiver, saying the Office of Foreign Assets Control's general license was consistent with previous agency actions and complied with applicable laws.
Energy Secretary Chris Wright described the waiver as an attempt to increase global diesel supplies while encouraging Russia to negotiate an end to its war against Ukraine.
The political uncertainty has further discouraged potential buyers ahead of the US midterm elections. Industry representatives warned that companies handling Russian fuel could face congressional investigations or legal scrutiny under a future administration.
Ukrainian lawmaker Maryan Zablotskyy condemned the potential purchases, warning that revenue from the diesel could finance further Russian attacks against Ukraine.
Former Ukrainian presidential economic adviser Oleg Ustenko said he hoped American businesses and port operators would refuse the shipments, describing a potential boycott as a powerful gesture of support for Ukraine.
- Share:
