Russian diesel tanker heads to US after Trump-Putin deal

The Russian Embassy in South Africa said on Friday that a tanker carrying Russian fuel had left the port of Primorsk for New York.

The Wall Street Journal reported the development on Friday.

Trump announced the deal earlier this month as part of efforts to bring down soaring diesel prices in the United States ahead of the November 3 midterm elections. To facilitate the deal, Trump eased several provisions of new US sanctions against Russia.

He also urged European countries to release more fuel from their emergency reserves, warning that the United States could halt diesel exports to them otherwise.

According to LSEG shipping data, the Malta-flagged medium-sized tanker Agioi Fanendes departed Russia's Baltic port of Primorsk on October 22, carrying 40,000 metric tonnes of ultra-low-sulphur diesel.

The vessel is expected to arrive in the United States on November 7.

The identities of the buyer and seller were not immediately known. However, the shipment would be the first Russian oil cargo imported into the United States since former US President Joe Biden imposed sanctions on Russian oil and petroleum products in 2022.

On October 9, Trump announced that Russia would immediately export 300,000 metric tonnes of diesel to the United States and the global market. A further 500,000 tonnes would be supplied in November, followed by another one million tonnes, he said.

Kremlin spokesman Dmitry Peskov confirmed on a conference call on Friday that the first tanker had departed. However, he did not clarify whether it was heading to the US market or another destination.

“As far as I know, the Energy Ministry has already reported that the first tanker has departed for buyers. From now on, these supplies will continue at a regular pace,” he said.

As part of the deal with the United States, Russia has lifted its own restrictions on diesel exports.

Since the European Union imposed a full ban on Russian oil imports in February 2023 following the war in Ukraine, Moscow has largely exported diesel to Turkey, Brazil and African countries, while continuing to supply fuel to Central Asia by rail.

According to shipping data from LSEG and Kpler, Russian diesel tankers have begun returning to their traditional destinations following Moscow's decision to lift its export restrictions. At least two vessels have already signalled that they are heading towards Turkey and Brazil.

Russian Deputy Prime Minister Alexander Novak said further shipments to the United States would be facilitated once companies from both countries finalised the necessary contracts.

Source: The Wall Street Journal