Part of Putin's diesel tankers turn around and head away from the US – FT

Two of the first tankers initially heading to the US have abruptly changed course – one has passed through Gibraltar into the Mediterranean Sea, and the second is heading to South America.

Source: Financial Times

Details: The tankers in question are Talisman, a 20-year-old vessel under US, UK and EU sanctions, and Hong Kong-owned, Sierra Leone-flagged tanker Leruo, subjected to UK, EU and Canadian sanctions.

Furthermore, the tankers no longer display the US Atlantic Coast as their destination. Talisman, which was sailing off the coast of Algeria in the Mediterranean on 5 November, transmitted the signal "for orders", while Leruo changed its signal to "Brazil".

A third tanker loaded with Russian diesel – the Greek-owned tanker Agioi Fanendes – continues its journey to the US, but is also transmitting an "for orders" signal.

Its owners, Eastern Mediterranean Maritime, previously told FT that the vessel was signalling "for orders" because the unloading port has not yet been confirmed.

Another sanction-hit tanker, Seychelles-owned Beast, loaded in the Russian port of Primorsk on 27 October, also set off towards the US and is transmitting an "Atlantic" signal, indicating that its destination is the US Atlantic Coast.

The change in course occurred against the backdrop of worsening diesel supply conditions in the US: new information shows that stockpiles have fallen below 100 million barrels for the first time in over 20 years. A shortage of foreign cargoes threatens to further exacerbate the situation.

Analysts cite threats from New Jersey Governor Mikie Sherrill as one of the reasons, having said that companies accepting tankers with Russian diesel face severe secondary sanctions.

Quote from Kpler analyst Matt Smith: "However, given the apparent hesitancy from US buyers – due to regulatory, legislative and sanction issues – it wouldn't be too surprising if this tanker [Agioi Fanendes] diverted away from the US as well."

Quote from Jacob Meldgaard, CEO of the product tanker company Torm: "Even before Congress being Democrat, it looks as if it is not so easy to reintegrate Russia into the broader economy. Not even when you have an administration that is trying to do it."

Background: The Washington Sun previously 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.

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