The administration of US President Donald Trump is trying to persuade American companies to accept consignments of Russian diesel fuel that are already on their way across the Atlantic. However, businesses are in no hurry to conclude deals due to the risk of breaching sanctions and potential reputational damage. At least three tankers carrying Russian diesel set sail for the US in mid-October, but no buyers have yet been found for the cargoes.
American companies are refusing to buy Russian fuel
According to The Washington Sun, representatives of the administration Trump and Moscow are trying to find buyers for Russian diesel, offering favourable supply terms.
Despite substantial discounts, American companies are in no hurry to accept shipments. The main concerns relate to sanctions legislation and possible Congressional inquiries.
On 16 October, Trump issued an executive order easing sanctions restrictions on Russian diesel. However, Democrats in Congress have questioned the legality of this decision.
The US Department of the Treasury stated that the authorisation granted is in line with current legislation and the sanctions regulator’s previous practice.
The tankers may change course and head for Brazil
One of the tankers, the Agioi Fanendes, flying the Maltese flag, is carrying approximately 40,000 tonnes of diesel fuel. It was originally due to arrive at the Port of New York and New Jersey on 7 November. Subsequently, the destination was changed to ‘undetermined’ in the vessel tracking system. Another tanker, the PVT Azura, was heading towards Norfolk in the US.
According to estimates by the consultancy firm Rapidan Energy Group, if no American buyers can be found, Russian fuel may be redirected to Brazil.
The US Congress has warned of possible liability
Democratic Senator Richard Blumenthal He called on tanker owners to stop supplying Russian diesel to US ports. He also warned companies of the potential legal consequences of trading in fuel subject to sanctions.
Governor of New Jersey Miki Sherrill stated that it was considering ways to prevent a Russian tanker from entering the state’s port.
At the same time, the US Secretary of Energy Chris Wright He explained that the easing of restrictions was driven by a desire to increase the supply of diesel on the global market and to encourage Moscow to enter into negotiations to end the war against Ukraine.
