First Russian Diesel From Putin-Trump Deal Heading for US

Oct 23 (Reuters) – The first Russian diesel bound for the US following a surprise agreement reached between Moscow and US President Donald Trump is aboard a tanker heading for New York, ship-tracking data showed on Friday.

Trump announced the deal this month as part of his efforts to bring down soaring diesel prices ahead of November 3 US mid-term 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 was loaded with 40,000 metric tons of ultra-low sulfur diesel in Russia’s Baltic port of Primorsk on October 22, according to LSEG shipping data. It is expected to arrive in the United States on November 7.

The identity of the buyer and seller were not immediately known. The cargo will be the first 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 October 9 that Russia would immediately export 300,000 metric tons, or 2.25 million barrels, to the US and global markets, followed by 500,000 tons in November and 1 million tons “immediately thereafter.”

A Kremlin spokesperson on Friday confirmed a 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 on a daily conference call.

The deal with the US involved Russia lifting a self-imposed ban on diesel exports.

RUSSIA RESUMING GLOBAL EXPORTS Since the EU 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 and Brazil, as well as to 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 signaling trips to Turkey and Brazil.

It was unclear where other tankers were destined for, with cargoes loaded in Primorsk signaling Gibraltar, the Atlantic Coast or Port-Said, LSEG data showed.

Russian Deputy Prime Minister Alexander Novak has said 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 that Russia would be able to increase its diesel exports to its usual levels of 3-3.5 million tons per month by year-end.

(Reporting by Reuters; editing by Philippa Fletcher and Jason Neely)

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