American Companies Don't Want to Buy Russian Diesel That Trump Agreed On. It May Go to Brazil

Reportedly, representatives of Donald Trump's administration are unofficially encouraging American companies to purchase Russian fuel. However, businesses are concerned about the potential consequences of such deals, especially ahead of the US midterm elections on November 3. If Democrats win, companies could face investigations and claims over fuel purchases that remain subject to sanctions.

Analysts at Rapidan Energy Group suggest that while Russia and the US are currently seeking buyers, Russian diesel may ultimately end up in Brazil. Other industry experts interviewed by the publication share this view.

Between October 16 and 22, three diesel fuel tankers — Talisman, Leruo, and Agioi Fanendes — departed from the Baltic port of Primorsk en route to the US. The first is subject to US and EU sanctions, and the second to UK and EU sanctions. Together, the vessels are carrying 924,000 barrels of fuel. This is less than a third of the daily diesel consumption by the US transport sector. The tankers were expected to arrive at their destination between November 7 and 11. According to the agreements, the total volume of supplies to the US was supposed to be 4.8 million tons of diesel.

However, the vessels' routes are already changing. According to Reuters, the tanker Leruo has designated its destination as 'Atlantic Coast – Awaiting Orders'. The other two vessels initially indicated traditional arrival points in Turkey and Brazil.

Many American politicians also oppose the shipments. New Jersey Governor, Democrat Mikie Sherrill, stated that she is seeking ways to prevent Russian diesel from entering the ports of New York and New Jersey. She called the Trump-Putin deal corrupt and illegal.

A group of bipartisan congressmen also urged companies not to engage in the purchase, transport, import, unloading, storage, financing, or distribution of Russian-origin diesel fuel. On October 27, they sent letters to the largest American banks, ports, and fuel distributors, warning of potential lawsuits and liability for participating in such transactions.

The import of Russian diesel into the US is prohibited by the Ending Importation of Russian Oil Act, enacted in 2022. It allows the president to lift the ban on Russian fuel supplies only after providing 90 days' written notice to Congress and on the condition that Russia ceases its aggression against Ukraine and stops posing a threat to any NATO country.

In mid-October, US President Donald Trump unexpectedly lifted sanctions on Russian diesel, anticipating a reduction in fuel prices in the US and globally. He reached an agreement with Russian President Vladimir Putin regarding supplies. However, as the article asserts, the legal prohibition remains in force: Trump did not notify Congress of its repeal, and the conditions for lifting the restrictions have not been met.

Congress deemed such a deal dangerous, stating that it would provide Moscow with additional funds to finance its war against Ukraine.

Meanwhile, the promised reduction in diesel prices in the US has not yet materialized. Fuel there is selling for approximately $6.3 per gallon — slightly more expensive than at the time the agreements between Trump and Putin were concluded.

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