Trump administration urges companies to buy Russian diesel, media reports
Photo: A Russian oil tanker (Getty Images)
The Trump administration is looking for buyers for Russian diesel fuel that is about to arrive in the United States. However, questions about the legality of accepting Russian shipments have made the fuel difficult to sell, according to The Washington Sun.
Russian diesel seeks buyers
At least three vessels carrying Russian fuel departed for the United States in mid-October following a decree issued by US President Donald Trump on October 16 that lifted sanctions on Russian diesel.
According to industry groups familiar with the discussions, Trump administration officials are privately encouraging American companies to accept Russian diesel fuel, despite the risk of legal and reputational consequences.
Industry representatives and energy analysts told The Washington Sun that one reason for concern is that Democrats in Congress argue Trump’s order violates sanctions laws.
"Moscow and Washington are still scrambling to find takers, but we wouldn’t be surprised if the cargoes ultimately head to Brazil," a client note from Rapidan Energy Group said.
One analyst said that both Moscow and Washington were strongly encouraging companies to purchase the cargoes and offering substantial discounts.
A Treasury Department official told The Sun that the Office of Foreign Assets Control’s "general license is consistent with actions the agency has taken in the past. We are complying with applicable laws and regulations."
RBC-Ukraine previously reported that US Senator Richard Blumenthal had called on shipping companies to turn back vessels carrying Russian diesel. He said the shipments were illegal.
In addition, three tankers carrying Russian diesel are heading to the United States. One of the vessels is subject to international sanctions.
It was also reported that Democrats are laying the groundwork for an investigation into the US-Russia diesel deal. Bank and port administrators have received letters demanding action.
