Russian oil tankers drifting at sea as no buyer takes up Trump diesel deal

· New York Post

Russian tankers looking to import diesel into the US as part of President Trump’s deal with Moscow are stuck drifting at sea — because no company wants to touch the processed crude.

Not a single Russian tanker has reached the US since the Oct. 9 deal as legal questions remain about whether the president’s waiver provides enough protection to import the sanctioned fuel, The Telegraph reported.

That includes the Agioi Fanendes, which was headed to New York with 300,000 barrels of diesel before veering off course on Monday. The tanker is now loitering off the East Coast, according to ship-tracking data.

Sanctioned Russian tankers, like the Bratsk, represent too great of a risk to do business with in the U.S. despite President Trump’s deal with Moscow. REUTERS

At least three other ships bound for the US were also turned away last week as companies are reluctant to breach US and international sanctions on Russian crude.

Any savings from buying the cheaper Russian diesel would be easily wiped out by potential legal fees, likely upcoming congressional investigations, and reputation damage of going through with the exchange, said Jeremy Paner, a former US sanctions official.

“It’s a relatively easy call for businesses to say, ‘We don’t want to touch ‌it,’” Paner told Reuters.

Despite the lack of sales in the US, Energy Secretary Chris Wright said he was confident that the tankers would sell their fuel elsewhere if they can’t get into the US.

Trump announced the deal ahead of the midterms to help deal with the high cost of fuel in the US and around the world. AFP via Getty Images

“We just want that diesel going into the world markets,” he told reporters on Tuesday.

Trump’s deal called for Russia to immediately export 2.25 million barrels of diesel to the US and global markets, with millions more set to be delivered after Nov. 1 and “immediately thereafter.”

The order received immediate backlash from Congress, including US Rep. Jamie Raskin (D-Md) of the House Judiciary Committee, who warned that importers would remain liable “long after the current administration leaves office.”

A person pumps diesel at a Pilot gas station in Texas as the average cost of diesel remains above $6 in the U.S. Getty Images

“Your members are now on notice that taking part in any effort to help President (Vladimir) Putin hawk Russian diesel in the US is a clear and dangerous violation of federal law,” he wrote US oil industry groups and the Chamber of Commerce.

New Jersey’s Democratic Gov. Mikie Sherrill also issued a stark warning that any local port officials found accepting Russian diesel would be held liable for violating federal law.

Opponents of the deal say it only rewards Russia for its invasion of Ukraine, all while providing very little assistance to Americans facing high prices at the pump.

October and November’s total deliveries would cover less than two days of the country’s diesel consumption.

With no ship yet to successfully import Russian diesel into the US, it remains unlikely that any of Moscow’s tankers will make their way into the country, said Janiv Shah, a vice president at consultancy Rystad Energy.

“If the first vessel is unable to dock or discharge in any US ports, that does create that bit of a hurdle for every further vessel that is on its ​way,” he said.

With Post wires