Tanker carrying Russian diesel halts off US coast, shipping data shows

A tanker carrying the first cargo of Russian diesel for the United States has come to a halt off the US east coast, shipping data showed ‌on Tuesday, and its operator said its destination had yet to be decided.

President Donald Trump last month announced a surprise deal with Moscow to import diesel from Russia to help lower prices at the pumps ahead of this month's US midterm elections. The Malta-flagged tanker Agioi Fanendes ‌was loaded with 40,000 metric tons of ultra-low sulphur diesel in Russia's Baltic port of Primorsk on October 22, LSEG shipping data showed, ‌with an expected delivery date of November 7.

But the Greece-based company which manages Agioi Fanendes, Eastmed, said a week later that the vessel was proceeding awaiting orders and that a port of discharge had not yet been nominated or finalised. "Nothing has changed regarding the vessel's destination, she is still awaiting orders," Greece-based vessel manager ⁠Eastmed told Reuters ​on Tuesday.

Asked about the halt, a ⁠US official said Russian diesel was heading to the market and that the administration expected it to lower prices for Americans, though the official did not specify where ⁠the cargo would make land. Vessels may change their declared destination or revert to "for orders" status more than once during a voyage when a prospective ​deal falls through, plans change or the operator does not wish to declare its intended destination.

Other tankers carrying Russian diesel ⁠which had signalled the US Atlantic Coast as their destination later altered course, shipping data showed. RUSSIAN IMPORTS BANNED IN 2022

Former President Joe Biden had imposed a ban on ⁠US ​imports of Russian oil and petroleum products in 2022 after Russia's invasion of Ukraine. Trump in approving the deal last month waived parts of a new US sanctions law on Moscow and said Russia would immediately export 300,000 tons, or 2.25 million barrels, to the ⁠US and global markets, followed by 500,000 tons in November and 1 million tons "immediately thereafter".

New Jersey's Democratic Governor Mikie Sherrill this month warned local ⁠port officials and terminal operators ⁠against accepting Russian diesel, saying those shipments would break federal law. Sherrill said importing Russian diesel could expose businesses and individuals using New Jersey ports to harsh civil and criminal penalties.