Russian Diesel Shipments Face NYH Import Blockade


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) - A Russian diesel consignment approved by the Trump 
administration for export to the U.S. faces a potential blockade at New York 
Harbor as Democratic New Jersey Governor Mikie Sherrill warns port and terminal 
operators against accepting the fuel.

   In a letter issued Monday (11/2), Sherrill said importing Russian diesel 
could expose businesses and individuals to civil and criminal penalties, 
arguing that a federal authorization permitting the shipments conflicts with a 
2022 law prohibiting Russian petroleum imports.

   The U.S. Treasury Department's Office of Foreign Assets Control issued a 
General License 135 on October 9, authorizing certain transactions involving 
the sale, delivery, unloading and importation of Russian-origin diesel. The 
Republican administration of U.S. President Donald Trump justified the import 
as necessary for heating in the Northeast, which includes New Jersey, ahead of 
the winter season.

   Connecticut Senator Richard Blumenthal, whose state is also in the 
Northeast, is another official besides Sherill who has urged shipping companies 
not to accept the Russian cargo. In an October 27 statement, Blumenthal 
identified the vessel with the Russian diesel  as Agioi Fanendes, saying it was 
laden with nearly 40,000 metric tons of the fuel and had declared the Port of 
New York and New Jersey as its destination. 

   The Russian diesel cargo set sail on October 22 and its current destination 
has not been independently confirmed.

   According to Blumenthal, the vessel was expected to make port on November 7, 
based on information available as of October 24.

   The escalating pushback against the diesel cargo highlights the growing 
opposition to the Trump administration since the U.S. midterm elections on 
Tuesday (11/3) as a newly empowered Democratic Congress prepares to challenge 
executive actions on foreign energy imports and war powers.

   East Coast distillate imports averaged 95,000 bpd during the week ended 
October 30, up from 94,000 bpd the previous week, according to the Energy 
Information Administration.

   Regional distillate inventories increased 719,000 bbl to 22.6 million bbl, 
including a 985,000-bbl build in the Central Atlantic to 10.8 million bbl. 
National distillate stocks, however, fell 3.6 million bbl to 99.3 million bbl 
during the same period, EIA data showed.




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