A tanker carrying 40,000 metric tons of Russian diesel is heading for New York under a new U.S.-Russia supply agreement, marking a reopening of a trade curtailed by Washington’s 2022 ban on Russian oil and petroleum imports.
The Malta-flagged Agioi Fanendes loaded ultra-low-sulfur diesel at Primorsk, Russia’s Baltic Sea oil port, on Oct. 22 and is expected to arrive in the United States Nov. 7, according to LSEG ship-tracking data cited by Reuters. The buyer and seller were not immediately identified.
The voyage is the first identified U.S.-bound shipment under the agreement President Donald Trump announced Oct. 9. It’s reported to be the first U.S. import since the 2022 ban, Reuters reported, although AP quoted maritime analyst Kpler states that it would be the first Russian diesel delivery since July 2023. Reuters cited LSEG shipping data for the current voyage, but does not identify the last previous delivery or give its arrival date. The AP report does not name the vessel, discharge port or circumstances of that 2023 cargo.
The diesel-specific sanctions relief is under General License 135, issued October 9, 2026, by the Treasury Department’s Office of Foreign Assets Control (OFAC). It temporarily authorizes Russian-diesel transactions otherwise prohibited under two sanctions programs: the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR Part 587, and the Ukraine-/Russia-Related Sanctions Regulations, 31 CFR Part 589.
Kremlin spokesman Dmitry Peskov confirmed Friday to Reuters that the first tanker under the arrangement had departed and said regular supplies would follow. Russian Deputy Prime Minister Alexander Novak has said additional shipments are planned as Russian and U.S. companies finalize delivery contracts.
The agreement combines U.S. sanctions relief with Russia’s decision to lift its own restrictions on diesel exports. Trump announced an initial release of 300,000 metric tons to U.S. and global markets, followed by 500,000 tons in November and 1 million tons “immediately thereafter,” according to Trump’s executive order.
The shipment comes as Trump seeks to rein in soaring diesel prices ahead of the Nov. 3 midterm elections. Its scheduled arrival, however, falls after Election Day.
“The diesel deal shows that Washington’s Russia policy is now driven by high prices at the pump before the November 3 midterm elections, rather than by any shared trans-Atlantic strategy,” said Matthias Matthijs, senior fellow for Europe at the Council on Foreign Relations.
Mohit Kumar, chief European economist at Jefferies, in an Oct. 12 research note quoted by CNBC, wrote, “Trump is exploring all avenues to bring down diesel prices before the mid-terms.”
At roughly 300,000 barrels, the cargo represents about 7% of the approximately 4 million barrels of diesel consumed by the U.S. economy each day, according to AP. Energy policy experts cited by the news agency said the import agreement was unlikely to substantially reduce fuel prices.
The agreement has drawn criticism from Ukraine, which has urged its partners to tighten restrictions on Russian energy revenue as Putin presses his war against Kyiv. Ukrainian President Volodymyr Zelenskyy called the U.S. decision “a weak decision by strong partners,” AP reported.
Why it matters: The sanctions relief makes Russian diesel easier to trade and transport, potentially increasing Moscow’s export earnings, while offering an uncertain benefit to fuel buyers.
This article was updated Oct. 23 to add details on the last pre-sanction oil shipments, and analyst commentary on the political reason for the sanction relief. A link was also added to the text of Trump’s executive order.
Read more articles by Stuart Chirls here.
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