Two Russian diesel tankers bound for US change course as Trump-Putin fuel deal falters

In brief

• Two of three Russian diesel tankers bound for the US have changed their listed destinations.
• The Talisman is now off Algeria awaiting orders, and the Leruo has signalled Brazil.
• The Agioi Fanendes still heads toward the US, but legal and sanctions uncertainty clouds the deal.
• The Kremlin denied any link between the route changes and the US election.

Route changes

The Financial Times reported that two of the three tankers carrying Russian diesel have stopped listing US ports as their destination (Після виборів у США російські танкери розвернулися дорогою до Америки: що заявив Кремль – TSN) (В Кремле прокомментировали изменение курса направлявшихся в США танкеров с российским дизтопливом – NV) (Rozpada się plan Donalda Trumpa w sprawie diesla. Tankowce zbaczają z kursu – Business Insider Polska). The Talisman, a sanctioned Russian-flagged vessel, was documented for the US Atlantic coast but is now off the coast of Algeria, transmitting a "waiting for orders" status (Dva tankery s ruskou naftou změnily směr. Trumpova dohoda s Putinem se hroutí – Novinky.cz) (Russian Diesel Tankers Bound for U.S. Change Course, Casting Doubt on Trump Deal – The Moscow Times). That status suggests the cargo has no confirmed buyer or delivery port (FT: Trumpi ja Putini diislitehing on läbikukkumise äärel – ERR) (FT: два з трьох танкерів з російським дизелем, які прямували до США, змінили курс – Європейська правда).

Other vessels

The Leruo, owned by a Hong Kong company and flying the Sierra Leone flag, changed its signal to Brazil on Monday, November 2 (Топливное соглашение под угрозой. Российские танкеры, которые везли дизель в США, сменили курс — FT – NV). The Agioi Fanendes, operated by Greece's Eastern Mediterranean Maritime, still appears to be heading for the United States, though it also signals that it awaits instructions. Its owner has said unloading arrangements are not yet confirmed. Kpler analyst Matt Smith said that tanker could also change course because of regulatory, legislative and sanctions issues, and that American buyers have so far been reluctant to take the cargoes.

Legal uncertainty

The FT pointed to the absence of a unified position within the US government on whether such imports are lawful. New Jersey Governor Mikie Sherrill has warned port and terminal operators in the state that they could face fines running into millions of dollars for unloading Russian diesel. A further sanctioned tanker, the Beast, loaded fuel at Primorsk on October 27 and is also heading toward the US Atlantic coast.

Kremlin response

Kremlin spokesman Dmitry Peskov rejected any link between the route changes and the US election process, saying there was no reason to see a political subtext. He declined to disclose commercial details of possible supplies, saying they could not be made public.

Background of the deal

The arrangement followed a telephone call between Trump and Putin on October 9, after which the sides announced supplies of Russian diesel to American and global markets. The US Treasury subsequently issued a temporary licence easing sanctions on Russian fuel. The deal has drawn criticism from Democrats, some Republicans and European partners, and a bipartisan group of senators has urged the White House to cancel it.

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