“Trump administration officials are privately encouraging
U.S. firms to accept Russian diesel currently crossing the Atlantic, industry
groups familiar with the conversations said, despite warnings that doing so
could place them in significant legal and reputational jeopardy,” the report said.
At least three tankers loaded with Russian diesel fuel are
currently en route to the United States. They set sail after President Donald
Trump lifted U.S. sanctions on Russian diesel earlier this month.
“Moscow and Washington are still scrambling to find takers,
but we wouldn’t be surprised if the cargoes ultimately head to Brazil,” Rapidan
Energy Group said in a note to clients.
“They’re being very strongly encouraged by both Moscow and
Washington to take these cargoes, including with steep discounts, but they’re
encountering a wall of resistance based on reputation and legal risks,” one
analyst said, as quoted by The Washington Sun.
Another analyst told the newspaper that the commercial
owners of the cargoes have been trying for weeks to find buyers, but U.S.
companies have shown no interest. Several sources confirmed that there were no
confirmed buyers when the diesel was loaded onto the tankers.
The Malta-flagged tanker Agioi Fanendes, carrying about
40,000 metric tons of diesel, was initially scheduled to arrive at the Port of
New York and New Jersey on Nov. 7. However, public vessel-tracking systems
later listed its destination as “for orders,” meaning its next port of call has
not been determined.
“Make no mistake: Trump’s diesel deal with [Russian dictator
Vladimir] Putin is corrupt and illegal, and I am evaluating options to stop it
from arriving at a port in New Jersey,” New Jersey Gov. Mikie Sherrill said.
She accused Trump of “lining Vladimir Putin’s pockets at the expense of
American consumers and our democratic ally Ukraine.”
Democrats in the House and Senate sent letters to ports,
banks and energy companies warning that transactions involving Russian diesel
could result in criminal liability. Because Democrats are likely to regain
control of the House (and possibly the
Senate) in next week’s midterm elections, the letters signal that fuel buyers
could face congressional investigations next year.
“Everyone is trying to run as far away from this as fast as
they can,” the newspaper quoted a Wall Street trader.
“Nobody wants to touch it because they’re afraid of what’s
going to happen in the next Congressional session. Nobody wants to get ensnared
in a lengthy legal battle or what will be a series of investigations and this
looks like a classic case of that.”