First Russian diesel shipment under Trump-Russia deal en route to New York
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First Russian diesel shipment under Trump-Russia deal en route to New York

Summary

A Malta-flagged tanker carrying 40,000 metric tons of ultra-low-sulphur diesel from Russia's Primorsk port is expected to arrive in the United States on Nov. 7, marking the first U.S. import since the 2022 ban on Russian petroleum products.

A Malta-flagged medium-sized tanker, Agioi Fanendes, loaded with 40,000 metric tons of ultra-low-sulphur diesel in the Russian Baltic port of Primorsk on Oct. 22, is on course for New York and is slated to arrive on Nov. 7, according to LSEG shipping data. The cargo represents the first Russian diesel shipment to the United States following a surprise agreement announced by President Donald Trump earlier this month aimed at lowering soaring diesel prices ahead of the November 3 mid-term elections.

Trump also announced a temporary waiver of parts of a new U.S. sanctions law against Russia and warned European nations of a possible U.S. diesel export ban unless they released additional emergency reserves to help ease price pressures.

Kremlin spokesman Dmitry Peskov confirmed that the first tanker under the deal had departed, adding,

"As far as I'm aware, there have already been reports from the Ministry of Energy that the first tanker has, in fact, set sail for its recipients, its buyers. Further shipments will continue at a steady pace from here on."

The identity of the buyer and seller has not been disclosed. The shipment follows President Trump’s Oct. 9 announcement that Russia would immediately export 300,000 metric tons of diesel to the United States and global markets, with larger volumes slated for November and thereafter.

Since the EU imposed a full embargo on Russian oil products in February 2023, Russia has redirected diesel exports mainly to Turkey, Brazil, African nations, and Central Asia via rail. Recent shipping data show Russian diesel cargoes resuming voyages to traditional destinations after Moscow lifted its own export ban. Deputy Prime Minister Alexander Novak indicated that additional U.S. shipments are expected as companies finalize contracts, and Kremlin envoy Kirill Dmitriev noted that the U.S. Treasury had sought assistance from Russia’s sovereign wealth fund to resolve payment issues related to the agreement.

Source

Reuters

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