Trump administration "strongly encouraging" US companies to accept Russian diesel – The Washington Sun

The Washington Sun has reported, citing industry groups, that Trump administration representatives are privately urging American companies to accept Russian diesel heading to the United States as part of the "diesel deal" despite warnings about potential legal risks for these businesses.

Source: European Pravda, citing The Washington Sun

Details: American companies are reportedly reluctant to assume the risks associated with buying diesel fuel from Russia, partly because Democrats in Congress argue that US President Donald Trump's executive order violates sanctions laws.

Nevertheless, administration officials are encouraging companies to accept Russian diesel that is currently en route to the US.

"They're being very strongly encouraged by both Moscow and Washington to take these cargoes, including with steep discounts, but they're encountering a wall of resistance based on reputation and legal risks," one analyst noted.

A Treasury Department official told The Washington Sun that the licence to purchase Russian diesel "is consistent with actions the agency has taken in the past" and that the Department is "complying with applicable laws and regulations".

An industry analyst said the commercial owners of the cargoes had "shopped" them for weeks, but had been unable to find a single buyer among US companies.

Several sources confirmed that there was no confirmed buyer when the diesel from Russia was loaded onto the tankers.

Democratic Senator Richard Blumenthal, the ranking member on the Senate Permanent Subcommittee on Investigations, sent letters to the owners of the vessels carrying Russian diesel to the US, demanding that they change course and refrain from delivering the cargoes to US ports.

"Any company or individual thinking about purchasing Russian diesel should be aware that they're committing a crime and that Congress is watching. Also, they may be held accountable by a future administration even if this one looks the other way," Blumenthal told The Sun in a statement.

He urged the companies to disclose information about the sellers, purchasers, terminal operators and insurers involved in the operation, as well as any direction issued by the Treasury Department.

Although the tankers are heading towards US ports, industry analysts and officials stated that they will likely change their final destination to Brazil, which has been purchasing substantial volumes of diesel fuel from Russia since the US introduced sanctions in 2022.

Background:

• It was recently reported that Democrats in the Senate and House of Representatives have asked US banks and ports to preserve any documents relating to Trump's deal regarding Russian diesel imports to the US for future possible investigations.
• Russia agreed to lift its self-imposed ban on diesel exports and supply it to global markets, including the US, following an agreement between Russian ruler Vladimir Putin and US President Donald Trump on 9 October.

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