OMM Newsroom
The tanker carrying the first diesel shipment under an agreement between Russia and U.S. President Donald Trump is heading toward the North Atlantic. It remains unclear whether the fuel will reach the United States.
According to Reuters, vessel-tracking data on Friday showed the tanker heading toward New York. The company operating the vessel later said its final destination had not been determined.
If the shipment reaches the United States, it would be the first Russian diesel fuel brought into the country since former President Joe Biden banned imports of Russian oil and petroleum products in 2022.
Tanker awaits instructions on final destination
According to LSEG shipping data, the medium-sized tanker Agioi Fanendes, sailing under the Maltese flag, loaded 40,000 metric tons of ultra-low-sulfur diesel at Russia’s Baltic Sea port of Primorsk on October 22. The data showed the vessel was expected to arrive in the United States on November 7.
It was not immediately clear who had bought or sold the cargo.
After vessel-tracking data was published, the tanker’s operator, Eastern Mediterranean Maritime Limited (EASTMED), said the vessel was sailing toward the North Atlantic while awaiting instructions. The company said New York had not been confirmed as its destination.
An EASTMED official told Reuters: “The discharge port or country has not yet been assigned or finalized.”
Kremlin confirms first shipment
Kremlin spokesman Dmitry Peskov confirmed on Friday that the first vessel under the agreement had left port. He did not say whether the tanker was bound for the United States or another market.
“As far as I know, the Energy Ministry has already reported that the first tanker has set off toward its buyers. Supplies will continue at a steady pace after that,” Peskov told reporters during a daily conference call.
Trump announced the agreement this month as part of efforts to bring down sharply rising diesel prices ahead of the U.S. midterm elections on November 3.
On October 9, he said Russia would immediately export 300,000 metric tons, or 2.25 million barrels, of diesel to the United States and global markets. Another 500,000 tons were due to follow in November, and “immediately after that,” 1 million tons.
Under the agreement, Russia lifted its ban on diesel exports.
Trump also declined to implement some provisions of a new U.S. sanctions law targeting Russia. He threatened to halt diesel exports from the United States to Europe unless countries released more fuel from their emergency reserves to help lower prices.
Supplies to other markets and payment issues
Russian Deputy Prime Minister Alexander Novak said additional shipments to the United States would be made after companies in both countries finalized the necessary contracts.
Kirill Dmitriev, an envoy of Russian President Vladimir Putin and head of the country’s sovereign wealth fund, said last week that the U.S. Treasury Department had asked the fund to help resolve difficult payment issues related to the agreement. A source familiar with the matter said the information was not true.
Since the European Union imposed a full embargo on Russian oil products in February 2023 over the war in Ukraine, Russia has shipped most of its diesel to Turkey, Brazil and African countries. Supplies have also been sent by rail to Central Asia.
Shipping data released this week by LSEG and Kpler showed Russian diesel cargoes beginning to move to traditional destinations after Moscow lifted its export ban. At least two tankers indicated they were heading to Turkey and Brazil.
The destinations of other tankers were unclear. LSEG data showed that some cargoes loaded at Primorsk were listed as bound for Gibraltar, the Atlantic coast or Port Said.
Novak said Russia could raise diesel exports to the usual level of 3 million to 3.5 million tons a month by the end of the year.
The Agioi Fanendes is expected to receive instructions on its next port while at sea. Whether the cargo reaches the United States before or after the November 7 date shown in shipping data will determine if the first delivery under Trump’s agreement arrives on U.S. shores as announced.
