Russian oil tankers are reportedly stuck at sea, unable to find buyers for diesel fuel destined for the United States, despite a recent deal brokered by President Trump. The agreement aimed to facilitate the import of Russian diesel, but potential buyers are hesitant due to existing U.S. and international sanctions on Russian crude.
Since the deal was announced on October 9, no Russian tankers have successfully reached U.S. ports. The tanker Agioi Fanendes, carrying 300,000 barrels of diesel and previously heading to New York, has been observed loitering off the East Coast. At least three other vessels bound for the U.S. were reportedly turned away last week.
Legal experts and former sanctions officials suggest that the potential risks associated with importing the sanctioned fuel outweigh any cost savings. Jeremy Paner, a former U.S. sanctions official, told The Telegraph that companies find it an "easy call" to avoid touching the fuel due to the potential for legal fees, congressional investigations, and reputational harm.
Energy Secretary Chris Wright expressed confidence that the diesel would find buyers in other global markets if not accepted in the U.S. The Trump administration's deal outlined the export of 2.25 million barrels of diesel to the U.S. and global markets in October and November, with further deliveries to follow.
The initiative faced immediate criticism from members of Congress. U.S. Representative Jamie Raskin (D-Md.) warned that importers could be held liable for violating federal law, even after the current administration leaves office. New Jersey Governor Mikie Sherrill also issued a warning to local port officials against accepting Russian diesel.
Critics argue that the deal offers minimal benefit to American consumers, as the total deliveries for October and November would cover less than two days of the nation's diesel consumption, while appearing to reward Russia amidst its invasion of Ukraine. Industry analysts believe that the initial difficulties faced by these tankers could create significant hurdles for any future Russian fuel shipments attempting to enter the U.S. market.