Russian fuel exporters have run into problems selling diesel cargoes originally intended for the United States under the “diesel deal” between Donald Trump and Vladimir Putin. After American companies refused to accept the shipments due to legal and political risks, the volumes were offered to Brazil — one of the world’s largest diesel importers. However, buyers there have so far shown little interest: the prices turned out to be uncompetitive compared with U.S. fuel.
According to Bloomberg, citing Sérgio Araújo, president of Abicom (the Brazilian association of fuel importers), Brazilian distributors were offered at least four tanker cargoes totaling about 1.1 million barrels (roughly 145–150 thousand tonnes) for delivery in November. If the deal had gone through, this would have been nearly twice the volume of Russian diesel imported by Brazil in October. Traders confirmed receiving the offers but noted that U.S.-made diesel would have been cheaper.
Brazil is the world’s second-largest diesel importer (after Australia) and traditionally covers about a third of its needs through imports. Demand usually rises toward the end of the year because of agricultural work and fertilizer transportation. In the past the country actively bought Russian diesel, but in recent months Russia’s share has declined in favor of American supplies.
Negotiations are still ongoing, but a deal is unlikely without a significant price reduction. So far Russian suppliers have not found firm buyers for these specific cargoes.
