Russian diesel shipments approach US amid legal dispute

Tankers head toward US ports

Three tankers carrying about 140,000 metric tons of Russian diesel are crossing the Atlantic toward US ports. Russian Deputy Prime Minister Alexander Novak said a fourth vessel was expected to leave Russia on Oct. 28.

The cargoes are the first authorized under an Oct. 9 agreement between President Donald Trump and Russian President Vladimir Putin that temporarily permits Russian diesel imports. The administration pursued the arrangement to ease diesel prices amid supply disruptions connected to the war with Iran and Ukrainian strikes on Russian refineries.

Congress challenges the authorization

The shipments have prompted opposition in Congress over whether the administration can permit imports without lawmakers’ approval. The Ending Importation of Russian Oil Act of 2022 prohibits imports of Russian energy products.

Sen. Richard Blumenthal, D-Conn., sent letters to Eastern Mediterranean Maritime Limited and PetroVietnam demanding that they recall tankers bound for the United States. He argued that the Treasury Department’s General License No. 135 cannot override the 2022 law.

Blumenthal also requested information by Oct. 31 about the companies involved and any guidance they received from the federal government. He threatened an investigation into businesses participating in the shipments.

Legal authority is disputed

Jeremy Paner, a former Treasury Department sanctions official and a partner at Hughes Hubbard & Reed, said the president has legal authority to approve the imports. He distinguished a license authorizing particular transactions from a repeal or waiver of the underlying import prohibition.

That distinction is now at the center of the dispute: lawmakers opposing the deal say the statutory ban controls, while Paner says the government may leave the ban in place and still authorize specific shipments.