U.S. officials are urging companies to accept discounted Russian diesel fuel. Businesses fear sanctions and reputational damage.
Officials in U.S. President Donald Trump’s administration are privately urging American companies to accept Russian diesel fuel bound for the United States. At the same time, businesses fear legal consequences and reputational damage. The Washington Sun reports this, according to UNN.
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American companies fear the risks associated with purchasing Russian fuel. In particular, Democrats in Congress claim that President Donald Trump’s executive order violates sanctions law. Despite this, administration officials are urging companies to accept cargoes that are still en route to the United States.
It is reported that both moscow and Washington are very forcefully encouraging them to accept these cargoes, including by offering significant discounts, but they are facing a wall of resistance because of reputational and legal risks.
A Treasury Department representative told the publication that the license to purchase Russian diesel “is consistent with actions the department has taken in the past,” and that the Department “complies with applicable laws and regulations.” According to an industry analyst, the cargo owners had been trying to “sell” them for several weeks but had found no buyers among American companies. Several sources confirmed that, when the tankers were loaded, there were no confirmed buyers in the United States.
Democratic Senator Richard Blumenthal, the senior member of the Senate Permanent Subcommittee on Investigations, urged shipowners in letters to change course and not deliver Russian diesel to American ports.
“Any company or individual considering purchasing Russian diesel fuel should understand that they are committing a crime and that Congress is watching. In addition, they could be held accountable by a future administration, even if the current one is turning a blind eye.” – Richard Blumenthal.
Blumenthal also called for the disclosure of information about the sellers, buyers, terminal operators, and insurers involved in the transaction, as well as any instructions from the Treasury Department.
According to industry analysts and officials, tankers heading to U.S. ports will likely change their final destination to Brazil. It has been purchasing significant volumes of Russian diesel since the United States imposed sanctions in 2022.
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