Two Tankers of Russian Diesel Turn Away From US Ports Despite Treasury License for Trump's Fuel Deal With Putin

Two tankers carrying Russian diesel have changed course away from their US destinations, and a third remains in the North Atlantic without a declared unloading port, OilPrice reported. The diversions complicate the agreement President Trump reached with Russian President Vladimir Putin in October to lower US fuel prices before the midterm elections. Matt Smith, an analyst at the shipping-data firm Kpler, said US buyers appear worried about legal consequences, and that even the cargo still heading for the United States is not certain to unload.

The cause is a conflict between two parts of the US government. Treasury's Office of Foreign Assets Control (OFAC) issued a general license that authorizes imports of Russian-origin diesel until April 7, 2027. A law passed by Congress banning Russian energy imports remains in force, Al Jazeera reported, and lawmakers have warned buyers of possible civil and criminal penalties. Treasury says its license complies with the law. Kirill Dmitriev, Putin's special envoy for economic cooperation, called the diversion reports "fake" and said the tankers were continuing on course, according to the Kyiv Post. The White House said Russian diesel remained in transit and headed to market.

Russian molecules reach Western markets in any case through refining. Dutch authorities said it is difficult to track the origin of petroleum products because of blending in the supply chain, Mint reported. The Netherlands remains one of the largest buyers of Indian refined fuel while Indian refiners continue to buy Russian crude. That raises questions about how well EU sanctions on Russian oil can be enforced.