US Administration Urges Companies to Accept Russian Diesel, Media Report
The Washington Sun reports that US officials are privately encouraging companies to accept Russian diesel cargoes, but firms fear legal and reputational risks. Democratic Senator Richard Blumenthal has demanded that ship owners change course.
Officials in US President Donald Trump's administration are privately encouraging American companies to accept Russian diesel headed for the United States under a so-called diesel deal between Moscow and Washington, The Washington Sun reports, citing industry associations. Companies are reluctant because of legal risks.
Companies' concerns
According to the outlet's sources, reputational and legal risks are holding firms back. This is partly because Democrats in the US Congress argue that Trump's executive order violates sanctions laws. One source said both Moscow and Washington are pressing companies very insistently to take the cargoes, including by offering substantial discounts, but are meeting a wall of resistance.
A US Treasury Department representative told the outlet that the license for purchasing Russian diesel is consistent with actions the department has taken in the past, and that the department follows current laws and regulations. One industry analyst said the cargoes' commercial owners had been trying to sell them for several weeks without finding a single buyer among US companies. Several sources confirmed that the diesel had no confirmed buyer when it was loaded onto tankers.
The senator's demands
Democratic Senator Richard Blumenthal, the ranking member of the Senate Permanent Subcommittee on Investigations, has written to the owners of vessels carrying the fuel, demanding they change course and not deliver the cargoes to US ports. He warned that any company considering a purchase could be held accountable by a future administration. Blumenthal urged companies to disclose information about sellers, buyers, terminal operators and insurers involved, as well as any guidance provided by the Treasury Department.
Industry analysts and officials say the tankers will likely change their final destination to Brazil, which has bought large volumes of Russian diesel since the US imposed sanctions in 2022.
Background
Democratic Party members in the US Senate and House of Representatives had earlier asked American banks and ports to preserve documents related to Trump's deal on importing Russian diesel, for further investigation. Russia had agreed to lift its own ban on diesel exports, following an agreement between Vladimir Putin and Trump on 9 October.
