Fuel Dispute: Lawmakers Urge Banks and Ports to Freeze Russian Diesel Deals
Bipartisan officials sent letters demanding companies preserve records and halt transactions until legal questions are resolved.
By James Brooks ·
The import of Russian diesel faces fresh scrutiny as US lawmakers pressure financial and port authorities to act.
A bipartisan group sent letters to executives at major banks and port authorities warning that facilitating these imports could violate federal law. The officials cited the Ending Importation of Russian Oil Act of 2022 and Section 216 of the Countering America’s Adversaries Through Sanctions Act. They argued the administration failed to meet congressional review requirements for the waiver. The letters state that companies may face civil and criminal liability if they proceed.
President Donald Trump announced an arrangement with Russian President Vladimir Putin on October 9. Russia confirmed the deal shortly after. The United States Treasury Department issued General License 135, providing a six-month exemption from certain sanctions. The administration plans to import more than 300,000 metric tons of diesel initially. Additional shipments of 500,000 tons are scheduled for November, with up to 1 million tons following. Russia began granting exemptions to its export ban on October 1 to support these deliveries.
The lawmakers requested that companies preserve all records related to proposed or completed transactions. This includes contracts, shipping documents, and payment records dating back to September 1. Recipients must confirm by October 28 that they have implemented these preservation measures. They must also disclose if they know of any actual or proposed imports. The letters went to executives at Goldman Sachs and other major banks. Port authorities in Houston, Corpus Christi, Beaumont, and New York/New Jersey are also recipients.
Vessel-tracking data suggests ships carrying Russian diesel could arrive at Beaumont and New York/New Jersey by the end of October. Representative Gregory Meeks, the top Democrat on the House Foreign Affairs Committee, is part of the group that sent the letters. Senator Thom Tillis, an outgoing Republican, joined the effort. The White House called the initiative politically motivated. Spokesperson Taylor Rogers said Democrats would continue their obsession with investigating President Trump. The administration maintains its action is lawful and consistent with previous Treasury decisions.
Representative Jamie Raskin separately warned fuel-industry groups that imports could carry penalties up to 20 years in prison. He argued the presidential move cannot override statutory prohibitions. Experts note the legal uncertainty may cause banks to hesitate. Glen Howard, president of the Saratoga Foundation, said the letters would likely cause banks to freeze efforts to proceed. Rachel Ziemba, a senior fellow at the Center for a New American Security, believes most cargoes will be sold outside the United States. She described the situation as diplomatic theater that could deter American buyers. Some cargoes may be resold to other countries in the Americas where demand remains strong.
