American companies are reluctant to buy Russian diesel due to legal and reputational risks. Despite agreements between Donald Trump and Vladimir Putin on fuel supplies, U.S. businesses fear the potential consequences of such deals. With no buyers in the United States, tankers carrying the cargo may change course and ultimately deliver the fuel to Brazil.
On October 9, 2026, after a phone call with Putin, Trump announced the deal: Russia would “immediately” supply more than 300,000 tons of diesel to the U.S. and global markets, another 500,000 tons in November, and 1 million tons “immediately thereafter.” That same day, the U.S. Treasury Department issued General License 135, authorizing transactions involving Russian diesel, including imports into the United States, through April 7, 2027. Russia partially lifted its own diesel export ban, which had been imposed due to domestic shortages.
In mid-October, several tankers carrying ultra-low-sulfur diesel (including the Agioi Fanendes, Leruo, and Talisman) departed from the Baltic port of Primorsk. Some vessels initially signaled destinations on the U.S. East Coast (New York and other ports), with expected arrivals in early November — after the November 3 midterm congressional elections. However, according to analysts and market participants, the cargoes still have no confirmed American buyers.
Trump administration officials are privately urging U.S. companies to accept the fuel (including at steep discounts). The companies are refusing. The main reasons are legal risks and reputational concerns. Congressional Democrats (including Senator Richard Blumenthal) have sent letters to banks, ports, and energy companies warning that deals involving Russian diesel could lead to criminal liability and investigations, especially if Democrats gain a majority after the elections. The 2022 law banning imports of Russian petroleum products remains in effect, and many doubt that the Treasury’s temporary license fully eliminates the risks.
In a note to clients, the analytical firm Rapidan Energy Group stated directly: “Moscow and Washington are still scrambling to find takers, but we wouldn’t be surprised if the cargoes ultimately head to Brazil.” Other market participants confirm that tankers have already changed their signals to “Atlantic coast for order,” leaving open the possibility of a route change. Since 2022–2023, Brazil has become one of the largest buyers of Russian diesel (alongside Turkey), as it has not imposed its own bans and has received the fuel at a discount.
So far, the effect on U.S. diesel prices has been zero or even negative: according to AAA, the average price per gallon rose from $6.28 at the time the deal was announced to about $6.35 by the end of October. The volumes promised under the agreement are small relative to U.S. and global consumption, and the condition of Russian refineries (damaged by Ukrainian strikes) raises doubts about the ability to quickly increase supplies.
The situation creates a political and legal confrontation: the administration is trying to show lower prices ahead of the elections and “incentivize” Russia to negotiate, while opponents consider the deal illegal and harmful to support for Ukraine. As the tankers remain en route, the final decision on where the cargo will be delivered has not yet been made.
