Russian diesel shipment to U.S. market pauses off East Coast

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Russian diesel tanker pauses

Highlights

The Malta-flagged Agioi Fanendes loaded 40,000 metric tons of Russian ultra-low sulphur diesel in Primorsk on October 22, but has yet to finalize a U.S. port destination.
Trump authorized an initial 300,000-ton Russian diesel export waiver to the U.S. and global markets, bypassing Biden's 2022 ban after Russia’s Ukraine invasion.
New Jersey Governor Mikie Sherrill warned local ports this month that accepting Russian diesel could violate federal law and result in civil and criminal penalties.

Voyage status and cargo destination

As reported by Reuters, the Malta-flagged Agioi Fanendes loaded 40,000 metric tons of ultra-low sulphur diesel at Russia’s Baltic port of Primorsk on October 22, according to LSEG shipping data, with an expected delivery date of November 7.

Eastmed, the Greece-based company that manages the vessel, says the tanker is still awaiting orders and that no port of discharge has been nominated or finalised. A U.S. official says the cargo is heading to the market and that the administration expects it to help lower prices for Americans, but the official does not specify where the shipment is due to land.

Tankers can switch declared destinations or return to "for orders" status during a voyage if a prospective deal falls through, plans change or operators choose not to disclose an intended destination. Shipping data also shows that other tankers carrying Russian diesel and initially signalling the U.S. Atlantic Coast later altered course.

Sanctions waiver and port opposition

Trump announced the diesel import arrangement with Moscow last month, presenting it as a measure to ease prices at the pump. Under the plan he outlined, Russia would immediately export 300,000 tons, or 2.25 million barrels, to the U.S. and global markets, followed by 500,000 tons in November and 1 million tons immediately thereafter.

Former President Joe Biden imposed a ban in 2022 on U.S. imports of Russian oil and petroleum products after Russia’s invasion of Ukraine. Trump, in approving the new deal, waived parts of a newer U.S. sanctions law on Moscow.

Resistance is also building at the state level. New Jersey Governor Mikie Sherrill warns local port officials and terminal operators this month against accepting Russian diesel, saying such shipments would violate federal law and could expose businesses and individuals using New Jersey ports to civil and criminal penalties.

As a reminder, we recently detailed how surging Oil tanker rates have been lifting fuel and broader consumer costs.

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