President Donald Trump's deal to import Russian diesel into the United States is faltering less than a month after it was announced, with two of the first tankers bound for American ports abruptly changing course this week and a third ship's destination now uncertain. Tracking data shows the vessels turning away from the US East Coast as port operators, banks and lawmakers warn handling the fuel could break federal law, even though the Treasury Department insists its sanctions exemption makes the shipments legal.
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| File photo: An oil tanker at sea. Two tankers carrying Russian diesel that had been bound for the US East Coast changed course this week, according to maritime tracking data. |
The Tankers That Turned Away
The Financial Times first reported the diversions, confirmed by marine data company Kpler and vessel-tracking site MarineTraffic.com. Two sanctioned tankers that left the Russian Baltic port of Primorsk at the end of October — the Talisman and the Leruo — had declared the US Atlantic coast as their destination and were expected in early November. By Thursday, both had changed course.
On Monday, November 2, the Leruo updated its transponder to show it was en route to Brazil, while the Talisman set a course for the Mediterranean Sea, where it is now off the coast of Algeria with its voyage status listed as "awaiting orders." Both vessels are under Western sanctions — the Talisman specifically by the US — and the Leruo is flagged in Sierra Leone and owned by a Hong Kong entity.
A third tanker, the Greek-flagged Agioi Fanendes, still appears to be heading toward the United States, but it too has changed its declared destination from New York to "for orders," leaving its unloading port unconfirmed. Kpler analyst Matt Smith said it was expected at the port of New York over the weekend, but warned it might also change direction.
"Because of regulatory, sanctions concerns, we may not see this cargo discharge on the U.S. Atlantic coast," Smith said. "It's clear there's hesitancy here in bringing these barrels onshore just because of the implications of doing so." Smith also said it was unclear whether the shipments had US buyers yet. As of this week, the deal has produced no confirmed delivery of Russian diesel to the United States.
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| File photo: President Donald Trump and Russian President Vladimir Putin at their summit in Anchorage, Alaska, on August 15, 2025. The two leaders agreed the diesel deal on October 9. |
The Deal That Started It
Trump announced the deal with Russian President Vladimir Putin on October 9: more than 300,000 metric tons of Russian diesel immediately for US and global markets, with larger shipments to follow. According to Le Monde, the deal called for 500,000 metric tons to be put on the market in November and more than 4.8 million metric tons in total.
The deal was pitched as relief for American drivers and businesses. US diesel inventories have fallen below 100 million barrels, their lowest level in more than 20 years, and prices have reached record highs during the US war with Iran, according to the Associated Press. Expensive diesel feeds through to consumer prices, since truckers and farmers rely on it. Trump has blamed Ukrainian President Volodymyr Zelenskyy for the price spikes and pressed Ukraine to halt drone attacks on Russian refineries. But the US banned Russian energy imports after the 2022 invasion of Ukraine, and the deal angered some lawmakers and allies from the start.
A Legal Fight Over the Ban
At the heart of the standoff is a clash between the Treasury Department's sanctions waiver and a law passed by Congress. The Treasury Department's Office of Foreign Assets Control (OFAC) issued an exemption allowing the sale, delivery, unloading and import of Russian-origin diesel, including in the United States, through April 7, 2027. The Treasury Department said Thursday the exemption was consistent with previous actions and "in compliance with all applicable laws."
Critics say the exemption cannot override the Ending Importation of Russian Oil Act, the ban on Russian hydrocarbons Congress passed in April 2022, which conditioned lifting the ban on Russia's withdrawal from all occupied Ukrainian territories. "The waiver granted by OFAC does not override this law, which is why no one at East Coast US ports is willing to violate it," said Sergei Aleksashenko, a senior fellow at the New Eurasian Strategies Centre.
On Monday, New Jersey Governor Mikie Sherrill, a Democrat, warned port officials and terminal operators in her state that any transaction involving the diesel would violate federal law and could result in sanctions. "New Jersey will not stand by while Donald Trump supports Vladimir Putin at the expense of Americans," Sherrill wrote. In a letter to port operators, she warned that "any effort to profit from the illegal trade in Russian fuel will be met with harsh penalties."
On October 30, Democratic Senators Elizabeth Warren, the top Democrat on the Banking Committee, and Ron Wyden, the top Democrat on the Finance Committee, wrote to JPMorgan Chase, Bank of America, Citigroup and Morgan Stanley, and to the Port Authority of New York and New Jersey, urging caution and asking them to preserve all documents related to Russian diesel transactions. A bipartisan group of senators has separately urged Trump to negate the deal, saying the US "should not provide Putin with a financial lifeline."
The administration maintains its authorization was lawful, and no court has ruled on the dispute. A Trump administration official who spoke anonymously said the shipments would reduce price pressures for Americans, but did not say whether any Russian fuel would reach the US directly.
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| File photo: A diesel fuel pump at a US gas station. US diesel prices stood at $6.28 a gallon on the day the deal was announced, and $6.29 on November 3, according to Le Monde. |
Prices That Barely Moved
For all the political turmoil, the deal has so far done little for the prices it was supposed to lower: the average US diesel price was $6.28 per gallon on the day the deal was announced, against $6.29 on November 3, according to Le Monde. Analysts said the imports were unlikely to move US prices much in any case.
"The volume agreed for the first month of the Trump-Putin deal — 500,000 metric tons for November — represents only 0.4% of global consumption. I do not think this will have any impact on prices," Aleksashenko said.
For Moscow, the agreement looks profitable: Putin needs funding for his war in Ukraine, and the deal is a significant bonus as Russia's financial strain has forced it to sell gold to China to fill the budget deficit. About 10 Russian regions have cut compensation paid to families of soldiers killed in combat.
What This Means
The diversions expose the gap between the deal Trump announced and the deal the market is willing to touch. The White House says the shipments are legal, but with the statute still on the books, no bank, port operator or fuel distributor wants to be the test case. The result is a policy that exists on paper while the ships sail elsewhere.
Moscow is publicly dismissing the reports. Kirill Dmitriev, Putin's special envoy for US relations, wrote on X on Thursday, November 5: "Fake. Tankers destined for the US continue on course. Why so much 'fake news' from the Financial Times?" Kremlin spokesperson Dmitry Peskov declined to comment on the change of course, calling them "commercial shipments whose details cannot be made public," and added: "All the diesel will find its buyers." Because diesel is traded on a global market, the diverted cargoes can be sold elsewhere, and the volumes involved are small in global terms. But the episode still leaves Trump with a political problem: a deal sold as relief for American fuel prices has produced no confirmed deliveries, no visible price drop, and a legal fight with Congress and state governors.
The controversy has also rattled allies. The deal sparked strong opposition from much of the American political class and drew criticism in Europe, where NATO Secretary General Mark Rutte pushed back by reminding European critics of the European Union's own large-scale purchases of Russian gas. It comes days after Republicans lost both chambers of Congress in the November 3 midterms.
What Happens Next
The immediate test comes this weekend, when the Agioi Fanendes is expected off New York. If it docks, the administration will have its first confirmed delivery; if it diverts like the Talisman and the Leruo, the deal will look dead on arrival in practical terms.
Neither the White House nor the Kremlin has disclosed whether the deal was put in writing, or revealed the price, payment terms or participating companies.
The legal question is unresolved: no court has ruled on whether the OFAC exemption can override the 2022 import ban, and the exemption runs only until April 7, 2027. With an incoming Democratic Congress and state officials threatening enforcement, the companies that would move, finance and unload the fuel have every reason to keep waiting.
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