First Russian diesel from Putin-Trump deal heading for US, data shows
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US President Donald Trump announced the deal in October as part of his efforts to bring down soaring diesel prices.
PHOTO: AFP
- First Russian diesel under a Putin-Trump deal is heading to the US on the Agioi Fanendes, with 40,000 tonnes loaded in Primorsk and due in New York on Nov 7.
- Trump made the deal to cut diesel prices before the Nov 3 mid-term elections, waived parts of a new Russia sanctions law, and promised more Russian exports.
- Russia has resumed wider diesel exports after lifting its own ban, with more shipments planned to the US and traditional buyers such as Turkey and Brazil, Reuters said.
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The first Russian diesel bound for the US following a surprise agreement reached between Moscow and US President Donald Trump is on board a tanker heading to New York, ship-tracking data showed on Oct 23.
Trump announced the deal in October as part of his efforts to bring down soaring diesel prices ahead of the Nov 3 US midterm elections.
Trump also waived parts of a new US sanctions law against Russia and threatened Europe with a US diesel export ban unless countries released more from their emergency reserves to help ease prices.
The Malta-flagged medium-sized tanker Agioi Fanendes loaded 40,000 tonnes of ultra-low sulphur diesel at Russia’s Baltic port of Primorsk on Oct 22, according to LSEG shipping data. It is expected to arrive in the US on Nov 7.
The buyer and seller were not immediately known. The cargo would be the first to be imported by the US since former president Joe Biden announced a ban on US imports of Russian oil and petroleum products in 2022.
Trump announced on Oct 9 that Russia would immediately export 300,000 tonnes, or 2.25 million barrels, to the US and global markets, followed by 500,000 tonnes in November and one million tonnes “immediately thereafter”.
A Kremlin spokesperson confirmed on Oct 23 that the first ship under the deal had departed, but did not specify whether it was bound for the US market or elsewhere.
“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,” Kremlin spokesman Dmitry Peskov said during a daily conference call.
The deal with the US involved Russia lifting its self-imposed ban on diesel exports.
Russia resuming global exports
Since the European Union imposed a full embargo on imports of Russian oil products in February 2023 over the war in Ukraine, Russia has exported diesel mainly to Turkey, Brazil and African countries.
It also supplies Central Asia by rail.
Shipping data from LSEG and Kpler published this week showed Russian diesel cargoes resuming voyages to their traditional destinations after Moscow lifted its own ban, with at least two tankers signalling trips to Turkey and Brazil.
It was unclear where other tankers were destined for, with cargoes loaded in Primorsk signalling Gibraltar, the Atlantic Coast or Port Said, LSEG data showed.
Russian Deputy Prime Minister Alexander Novak has said that additional US shipments would follow as companies from the two countries work out the necessary contracts.
Putin envoy Kirill Dmitriev, who also heads Russia’s sovereign wealth fund, said last week that the US Treasury had asked the fund to help sort out tricky payment issues relating to the agreement.
Novak has said Russia could increase its diesel exports to its usual level of three to 3.5 million tonnes a month by the end of 2026. REUTERS