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A tanker carrying 40,000 metric tons of Russian diesel is sailing toward New York under an agreement between Russia and U.S. President Donald Trump. The shipment follows Washington's decision to ease some sanctions as the administration seeks relief from diesel prices before the November 3 midterm elections. Shipping records indicate the vessel could reach the United States on November 7, after the elections.
The Malta-flagged Agioi Fanendes loaded ultra-low-sulfur diesel at Russia's Baltic port of Primorsk on October 22, according to LSEG data. The identities of the buyer and seller remain unknown. If the cargo arrives, it would mark a return of Russian diesel to the U.S. market after Washington's 2022 import ban.
Trump announced the agreement on October 9, saying Russia would immediately supply 300,000 metric tons of diesel to the United States and global markets. He also outlined another 500,000 tons for November, followed by 1 million tons soon afterward.
The deal required Russia to lift its own restriction on diesel exports. At the same time, Trump waived parts of a new U.S. sanctions law targeting Russia to allow the shipments. He also warned European governments that Washington could restrict U.S. diesel exports unless they released more fuel from emergency reserves.
Kremlin spokesman Dmitry Peskov confirmed Friday that the first tanker had departed. He did not name its destination or identify the recipient. Further shipments would follow on a regular basis, he said, as the two countries advanced the agreement.
Russian Deputy Prime Minister Alexander Novak also said more deliveries to the United States were expected. Companies in both countries still needed to settle contracts. Meanwhile, Putin envoy Kirill Dmitriev said the U.S. Treasury had sought help with payment arrangements involving Russia's sovereign wealth fund.
Russia's earlier suspension had restricted overseas diesel sales, but exports began moving again once Russia lifted the measure. Shipping data from LSEG and Kpler showed at least two tankers indicating journeys to Turkey and Brazil.
Other vessels that loaded in Primorsk reported Gibraltar, the Atlantic Coast or Port Said as their destinations. Those signals did not establish the ports where the fuel would ultimately discharge.
Since the European Union banned Russian petroleum-product imports in February 2023 over the war in Ukraine, Russia has sold diesel mainly to Turkey, Brazil and African countries. The new U.S. agreement adds another possible outlet for those supplies.
Novak said Russia could restore monthly exports to between 3 million and 3.5 million metric tons by year-end. That would bring shipments back toward their usual level.
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U.S. diesel prices have risen from USD 3.55 a gallon at the year's start to USD 6.32, an increase of 78%. Brent crude traded around USD 114 a barrel and headed for a third consecutive weekly gain. The benchmark stood less than USD 13 below its annual high.
The cost of diesel reaches far beyond service stations. Farms use the fuel, while freight operators rely on it to move goods. KPMG chief economist Diane Swonk previously warned that those transport costs can feed into food and other consumer prices.
Energy Aspects analysts expect only a limited effect. U.S. daily diesel use totals about 3.8 million barrels, while the 40,000-ton cargo represents less than one day's demand. The announced arrival date also falls after the November 3 vote.
Meanwhile, Bank of America commodities research head Francisco Blanch described a sharp tightening in global distillate markets. Diesel belongs to that group of fuels, which refineries produce from crude oil. His assessment pointed to a shortage of refined products as importers sought supplies.
The first Russian diesel cargo under the Trump-Moscow agreement is expected to reach New York on November 7. The shipment follows sanctions relief and renewed exports from Russia. Yet its 40,000-ton volume remains small beside daily U.S. demand, and analysts expect limited near-term relief for diesel prices.
