Tanker carrying 40,000 metric tons of Russian diesel heads to US after Trump’s surprise deal with Moscow

A tanker carrying 40,000 metric tons of Russian diesel is headed for New York, according to ship-tracking data released on Friday, following a deal reached between Moscow and Washington earlier this month.The Malta-flagged medium-sized tanker Agioi Fanendes was loaded with 40,000 metric tons of ultra-low-sulphur diesel at Russia’s Baltic port of Primorsk on October 22, Reuters reported, citing LSEG shipping data. The vessel is expected to arrive in the United States on November 7.Also Read | Trump’s Russian roulette: A high-stakes juggle between Vladimir Putin and the pollsThe identities of the buyer and seller were not immediately known. The shipment would mark the first US import of Russian oil or petroleum products since then-President Joe Biden announced a ban on such imports in 2022.The development comes after US President Donald Trump announced the surprise deal on October 9 as part of efforts to bring down soaring diesel prices ahead of the November 3 US midterm elections. The agreement also involved Russia lifting a self-imposed ban on diesel exports.Trump also waived parts of a new US sanctions law against Moscow and threatened to ban diesel exports to Europe unless countries released more fuel from their emergency reserves to help ease prices.

Further shipments to follow?

As announced by Trump on October 9, Russia was to “immediately export” 300,000 metric tons, or 2.25 million barrels, of diesel to the US and global markets, followed by 500,000 tons in November and another 1 million tons “immediately thereafter”.Russian Deputy Prime Minister Alexander Novak indicated that further shipments would follow as Russian and US companies finalise delivery contracts. He also projected that Russia could raise its diesel exports to their usual levels of 3 million to 3.5 million tons per month by the end of the year.Last week, Kremlin envoy Kirill Dmitriev, who also heads Russia’s sovereign wealth fund, revealed that the US Treasury had approached the fund for assistance in resolving complex payment issues related to the agreement.Since the European Union imposed a full embargo on imports of Russian oil products in February 2023 over the war in Ukraine, which began in February 2022, Russia has primarily exported diesel to Brazil and Turkey, as well as to countries across Africa.