New Jersey Gov. Mikie Sherrill (D) is considering blocking Russian diesel shipments from unloading at state ports, calling President Donald Trump’s arrangement with Vladimir Putin “corrupt and illegal.” Her warning adds another obstacle to the Trump administration’s effort to bring Russian diesel into the U.S. under a temporary sanctions waiver.
Sherrill Threatens To Block Russian Diesel Shipments
The Financial Times reported on Thursday that Sherrill is weighing the move. Sherrill’s warning comes as three tankers carrying approximately 140,000 metric tons of Russian diesel approach the U.S. Atlantic coast under Trump’s October 9 agreement with Putin. The shipments follow the administration’s decision to ease sanctions to address elevated American fuel costs ahead of the November 3 midterm elections.
The tanker ‘Agioi Fanendes’ initially signaled New York as its destination, but its manager told the Financial Times it was “proceeding for orders,” without a confirmed port. Reuters reported Thursday that another vessel, ‘Leruo‘, changed its destination to “Atlantic coast for order,” leaving its final destination uncertain. The third tanker, ‘Talisman‘, also faces Western sanctions.
Lawmakers Challenge Legality Of Trump’s Sanctions Waiver
The Treasury Department issued General License 135, authorizing transactions involving Russian diesel. However, lawmakers question whether that authorization conflicts with the 2022 Ending Importation of Russian Oil Act.
Republican Sen. Thom Tillis (R-N.C.) joined Democrats in warning banks, port authorities and fuel distributors about potential criminal and civil liability. The lawmakers previously argued Trump’s decision “runs directly counter to that law.” Sherrill’s legal authority to prohibit unloading remains uncertain.
Trump Administration Defends Diesel Import Arrangement
Trump announced that Russia would initially supply 300,000 tons of diesel, followed by another 500,000 tons in November. Energy Secretary Chris Wright subsequently defended the arrangement as “trying to put a carrot in front of Russia,” while acknowledging its limited impact on global supplies.
Meanwhile, U.S. diesel prices reached approximately $6.28 per gallon last week amid disruptions from the Iran conflict. Industry analysts told the Financial Times that legal and reputational risks were discouraging buyers, potentially forcing the Russian shipments toward alternative destinations, including Brazil.
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