US Lawmakers Warn Banks and Ports Against Russian Diesel Deal

A group of bipartisan US lawmakers warned major banks and port authorities against facilitating Russian diesel shipments under President Donald Trump's agreement with Vladimir Putin, raising the prospect of legal action and congressional investigations as tankers carrying Russian fuel begin heading to US ports. In an October 24 letter, the lawmakers called on six major financial institutions and port authorities in Texas and New York to preserve records related to Russian diesel transactions, including shipping documents, vessel logs, contracts, and communications with government officials.

Axios first reported the letter, which warned that importing Russian diesel into the United States raises serious legal questions and could expose involved companies to future investigations. The letter was sent to JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley, as well as port authorities overseeing Houston, Beaumont, Corpus Christi, and the Port of New York and New Jersey. Lawmakers urged the institutions not to participate in the purchase, transport, import, offloading, storage, financing, or distribution of Russian diesel, and to avoid facilitating its shipments to other international markets under the temporary sanctions exemption.

The letter was led by Senator Jeanne Shaheen, the ranking Democrat on the Senate Foreign Relations Committee, and signed by Senators Chris Coons, Elizabeth Warren, Ron Wyden, Sheldon Whitehouse, and Thom Tillis, in addition to Representative Gregory Meeks. The letter requested confirmation by October 28 that relevant records are being preserved, including shipping documents, contracts, and communications. A number of Democratic signatories could chair powerful Congressional committees if their party wins control in the midterm elections scheduled for November 3.

The warnings come as the first shipments of Russian diesel approach the United States following Trump's agreement with Moscow on October 9, which temporarily eased sanctions in an attempt to lower high fuel prices. The Vietnamese-flagged tanker "PVT Azura" is carrying around 109,000 barrels of Russian diesel and heading to Norfolk, Virginia, with an expected arrival on November 2, while the Maltese-flagged tanker "Agioi Fanendes" loaded about 40,000 metric tons of diesel at the Russian port of Primorsk on October 22 and is heading to New York with an expected arrival on November 7; neither shipment has been confirmed as destined for an American buyer. Under the agreement, Russia pledged to initially supply 300,000 metric tons of diesel, followed by 500,000 tons in November and one million tons thereafter. The Treasury issued General License 135, authorizing transactions related to Russian diesel until April 7, 2027. Lawmakers say the agreement conflicts with the Ending Importation of Russian Oil Act of 2022, while the Treasury maintains the agreement is legal, and the White House defends it as necessary to alleviate energy costs amid market disruptions stemming from the war with Iran.

What do these terms mean?

General License: Official authorization issued by the US Treasury permitting a specific type of transaction that was previously prohibited under sanctions.

Sanctions: Economic restrictions imposed by a country on another country or companies to prevent them from trading or financial dealing.

Diesel: Liquid fuel used in trucks, trains, ships, and generators, extracted from refining crude oil.