First Russian Diesel Tanker Under Trump-Putin Deal Heads for New York
The first Russian diesel shipment bound for the United States under President Donald Trump’s agreement with Vladimir Putin is on its way to New York.
The Malta-flagged tanker Agioi Fanendes loaded 40,000 metric tons of ultra-low sulfur diesel at the Baltic port of Primorsk on Oct. 22, Reuters reported, citing LSEG shipping data. The buyer and seller were not immediately identified.
LSEG and marine intelligence firm Kpler put the ship’s arrival at Nov. 7, according to the Associated Press. Energy Aspects told NBC News the vessel carried about 298,000 barrels and was expected in New York on Nov. 10.
Either date would put the cargo in port after the Nov. 3 midterm elections, in which fuel costs have become a central issue for voters and a source of worry for Republicans defending House and Senate seats.
The Kremlin confirmed the departure Friday, though it did not say where the ship was headed.
“As far as I’m aware, there have already been reports from the Ministry of Energy that the first tanker has, in fact, set sail for its recipients, its buyers,” Kremlin spokesman Dmitry Peskov said.
“Further shipments will continue at a steady pace from here on,” Peskov added.
A Small Cargo Against a Big Market
The shipment will be the first Russian diesel imported by the U.S. since then-President Joe Biden banned Russian oil and petroleum product imports in 2022. Kpler said the last Russian diesel delivery arrived in July 2023, AP reported.
Trump announced on Oct. 9 that Russia would immediately export 300,000 metric tons to the U.S. and global markets, followed by 500,000 tons in November and 1 million tons “immediately thereafter,” according to Reuters.
The first cargo is modest by comparison. Americans use roughly 3.8 million barrels of diesel a day, NBC reported, so the shipment would not cover one day of national demand.
Energy Aspects said the cargo’s impact would likely be “limited.”
Diesel prices have climbed from an average of $3.55 a gallon at the start of the year to $6.32, a 78% jump, according to NBC. Bank of America commodities chief Francisco Blanch wrote that global distillate markets “have tightened sharply.”
“Policy intervention can provide temporary relief, but there is no silver bullet for diesel,” Blanch wrote.
The deal required Russia to lift its own ban on diesel exports, which it imposed after Ukrainian drone strikes on its refineries. Trump has also waived most of the penalties in a new U.S. sanctions law against Russia.
That waiver has drawn fire from Republicans who backed the Lindsey O. Graham Sanctioning Russia and Iran Act, signed in September. Sen. Thom Tillis, R-N.C., called the move “beyond irresponsible,” and Sen. John Cornyn, R-Texas, said “Lindsey would be appalled,” CBS News reported.
Trump argues that keeping the penalties in reserve will help bring Putin to the negotiating table, Fox News Digital reported. AEI senior fellow Hal Brands warned the threat “may lose some credibility” if Washington repeatedly declines to use it.
Ukrainian President Volodymyr Zelenskyy blasted the diesel arrangement when it was announced, calling it “a weak decision on the part of strong partners” and “an investment in a war that must be ended,” Reuters reported.
Russian Deputy Prime Minister Alexander Novak has said more U.S. shipments will follow as companies from both countries finalize contracts, Reuters reported.
Novak has also said Russia expects to return to its usual diesel exports of 3 million to 3.5 million tons a month by year’s end.
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