Russian diesel shipment diverted amidst failed US-Russia energy agreement

In early October, Trump announced a deal with Russia to supply the U.S. with 300,000 tons of diesel in October, 500,000 tons in November, and 1 million tons thereafter, with the stated goal of lowering energy costs before the midterm elections.

However, the agreement reportedly violated existing U.S. sanctions against importing Russian oil and gas. As of November 11, no Russian diesel has been registered entering the country.

New Jersey Governor Mikie Sherill cautioned port operators in the state about potential civil penalties for handling Russian diesel. “Every port and terminal operator, intermediary, and buyer is on notice: do not help bring illegal Russian diesel into New Jersey,” she stated on November 2.

Sherill also accused the president of “helping finance Putin’s war against Ukraine.”

The diesel agreement failed to lower prices before the midterm elections, which resulted in losses for the Republican party.

Following the deal’s announcement, Trump claimed to have negotiated an ‘energy ceasefire’ between Ukraine and Russia. Shortly thereafter, Russia reportedly bombed a Ukrainian energy facility.

Experts have noted that even if the import agreement had been viable, it wouldn’t have resolved the current U.S. diesel shortage, which is also impacted by an Iranian blockade on oil in the Strait of Hormuz.

Rising diesel prices contribute to increased costs for household goods and other necessities due to their reliance on diesel fuel for long-haul trucking, with manufacturers passing these expenses onto consumers.

Questions have also arisen regarding Russia’s capacity to fulfill the promised diesel supply, according to the Kyiv Post. Ukraine’s recent attacks on Russian oil refineries have reportedly reduced oil production by 30% since late October.

Former Assistant U.S. Treasury Secretary Ben Harris stated, “you can’t find a buyer for Russian diesel.”