Russia Announces Three Diesel Tankers Heading to North America

Russian Deputy Prime Minister Alexander Novak said on Friday that three tankers loaded with Russian diesel are on their way to North America, as part of an agreement to supply US and global markets, according to a statement cited by Russian news agencies.

He added: "The first three fuel tankers are already on their way to the East Coast of the Atlantic Ocean, with significant support from the Russian Direct Investment Fund," noting that Russian companies can supply 500,000 tons in October.

The Trump administration temporarily lifted US sanctions on Russian fuel, which were aimed at depriving Moscow of revenue needed to fund its war against Ukraine.

Details of Russian Diesel Shipments
Trump took several steps hoping to lower diesel prices before the midterm congressional elections on November 3, including exempting Russia from some new sanctions and threatening Europe with a ban on exporting US diesel unless it drew down emergency reserves.

Data from London Stock Exchange Group showed on Friday that the tanker "Agiou Fanidis," flying the Maltese flag, departed the Russian port of Primorsk on the Baltic Sea on October 22, carrying approximately 40,000 tons of ultra-low sulfur diesel, indicating New York as its destination, with an expected arrival date of November 7.

Trump-Putin Agreement
Russia agreed to lift a ban it had imposed on diesel exports to supply global markets, including the United States, in an effort to reduce fuel prices following an agreement between Trump and Russian President Vladimir Putin.

Trump announced on October 9 that Russia would immediately export 300,000 tons, equivalent to 2.25 million barrels, followed by 500,000 tons in November and one million tons "immediately thereafter."

Putin received US Special Envoy Steve Witkoff on Wednesday for talks covering cooperation between the two countries, including the diesel supply agreement.

During the talks held in St. Petersburg, Witkoff thanked Putin for lifting export restrictions. Putin referred to the agreement, stating that global diesel prices had fallen by between 5 and 6% after the deal was concluded.

Witkoff said in televised remarks: "This is an example of our cooperation, and I want to thank you for that."

Russian Plans to Increase Diesel Exports
Putin noted at the time that the first Russian tankers loaded with diesel would depart within two or three days. He added: "We are currently preparing shipments of several vessels... tankers. They will leave one after another. And the financial aspect must be provided for."

He mentioned that Russia would also be able to supply fertilizers "in large quantities" to the US market.

Novak said last week that Moscow would be able to increase diesel exports to between three and 3.5 million tons per month by the end of the year, which are the normal volumes it exports.

Shipping data from London Stock Exchange Group last week showed diesel cargoes being loaded at the Russian port of Primorsk on the Baltic Sea, but their final destinations remained unclear.

Most tankers only indicated they were heading towards Gibraltar, the Atlantic coast, or Port Said.

Russia has exported diesel to countries including Brazil and Turkey, as well as African nations, since the EU ban on importing any Russian oil products in February 2023 due to the war in Ukraine.