Two tankers carrying Russian diesel have turned away from the US, putting Trump’s deal with Putin to bring Russian fuel to American buyers in doubt.
The Russian tanker Talisman and Hong Kong-owned Leruo have both abandoned the US Atlantic Coast as their declared destination, the Financial Times (FT) reported on Thursday, Nov. 5.
Leruo, which is under UK, EU, and Canadian sanctions, switched its destination signal to Brazil on Monday, Nov. 2.
Talisman, sanctioned by the US, the UK, and the EU, has turned away from the Atlantic and entered the Mediterranean. It is now off the coast of Algeria, signalling “for orders” – meaning it has no confirmed buyer or destination port.
A third tanker, the Greek-owned Agioi Fanendes, is still apparently heading towards New York, although it too is signalling “for orders.” The vessel was previously expected to deliver around 40,000 metric tons (44,092 US tons) of Russian diesel.
A fourth vessel, the Seychelles-owned Beast, is signalling “Atlantic” after loading diesel at Russia’s Primorsk port on Oct. 27, indicating that it is heading towards the US East Coast.
Matt Smith, an analyst at commodities intelligence firm Kpler, said US companies were reluctant to buy Russian diesel because of legal and sanctions-related risks.
The reluctance had already been reported by energy industry executives and analysts speaking to The Washington Sun.
New Jersey Governor Mikie Sherrill has also warned businesses that the deal could violate a 2022 law banning Russian energy imports following Moscow’s full-scale invasion of Ukraine.
Putin gets a fuel deal and a political backlash
Trump announced the arrangement on Oct. 9 after speaking with Putin, promising an immediate release of more than 300,000 metric tons (33,069 US tons) of Russian diesel, followed by additional shipments.
The deal triggered an immediate backlash in Ukraine. President Volodymyr Zelensky warned that renewed Russian fuel revenues would help finance Moscow’s war, questioning why Washington was easing economic pressure on the Kremlin while simultaneously negotiating an end to the invasion.
“This is additional money, additional money for this war against us, without question,” Zelensky said.
The arrangement also drew bipartisan criticism in Washington. Twelve US senators urged Trump to abandon the deal, arguing that easing restrictions would reward Moscow without meaningfully addressing American fuel prices.
The controversy deepened when the Treasury Department authorized transactions involving Russian diesel through April 2027.
Trump also waived broader sanctions provisions shortly before they were due to take effect, including measures targeting countries purchasing Russian energy.
Zelensky criticized the sanctions relief, warning that it would strengthen Putin rather than pressure him to end the war.
First shipment was a fraction of Trump’s promise
The first Russian diesel shipment eventually set sail for the US in late October.
The Greek-owned Agioi Fanendes loaded approximately 40,000 metric tons (44,092 US tons) at Russia’s Primorsk port, heading towards New York.
That was just 13% of the 300,000 metric tons (330,693 US tons) Trump initially promised would be released immediately.
Ukraine’s sanctions envoy Vladyslav Vlasiuk estimated that the cargo would cover less than two hours of US diesel consumption.
Moscow later announced that three tankers were heading to the US, with a fourth expected to follow.
Now, two of the three initially US-bound cargoes have changed course.
“Two of the three Russian diesel cargoes bound for the US have now diverted to other destinations,” Matt Smith, an analyst at commodities intelligence firm Kpler, told the FT.
Smith said the remaining tanker could also divert because of uncertainty among US buyers over sanctions and regulatory risks.
The developments come as US diesel inventories have fallen below 100 million barrels for the first time in more than two decades, according to the FT.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.