Russian Tanker Carrying 40,000 Tonnes of Diesel Heads to New York Amid U.S. Supply Shortages
Key Facts
A tanker carrying 40,000 metric tons of Russian diesel is heading to New York in the first shipment of its kind to reach the United States since July 2023, according to shipping data cited by Reuters and Kpler data reported by the Associated Press. The Maltese-flagged Agioi Fanendes was loaded with fuel at Russia’s Baltic Sea port of Primorsk on October 22 and is expected to arrive in the United States on November 7. The shipment follows an agreement announced by U.S. President Donald Trump with Russian President Vladimir Putin, and comes under a U.S. license authorizing transactions for the sale, delivery and import of Russian diesel. But it is limited relative to the size of the U.S. market, equivalent to about 7% of the U.S. economy’s consumption in one day, according to the Associated Press. Kremlin spokesman Dmitry Peskov said, "The first oil tanker has sailed to customers, and regular supplies will continue," without providing further details.
The expected arrival date of November 7 offers an indication of supply timing, rather than immediate relief from pressure in the U.S. market. That comes as the average retail price of diesel reached $6.29 per gallon in September, and the U.S. Energy Information Administration forecast that distillate prices would remain above $6 per gallon in October. East Coast distillate inventories were also 32% below their 2021–2025 seasonal average in September. The agency forecast that inventories would remain tight through the coming heating season. The shipment is therefore arriving in a market facing high prices and below-normal coastal inventories, even though its cargo is only a small fraction of one day’s consumption.
The tanker’s arrival marks a rare return of Russian diesel to the U.S. market after a halt dating back to July 2023, according to Kpler data cited by the Associated Press. The U.S. Treasury Department’s Office of Foreign Assets Control issued Russian General License 135 on October 9, authorizing transactions for the sale, delivery, unloading and import of Russian diesel. The license opens a specific legal channel for these operations in the context of the agreement announced by Trump. The agreement drew objections in Ukraine and criticism from Republicans and Democrats in the United States. Ukrainian President Volodymyr Zelensky described it as a "weak decision by strong partners."
The resumption of shipments comes as Russian diesel production has been under pressure from repeated Ukrainian drone strikes targeting oil refineries, according to the Associated Press. The agency said the attacks caused fuel shortages in Russia, which later eased. Russian Deputy Prime Minister Alexander Novak referred to additional shipments, saying, "Additional shipments will follow, of course," and that his country would meet U.S. needs "within our capabilities." Novak also said Russia was aiming to restore diesel exports to their usual levels of between 3 and 3.5 million tons a month by the end of 2026. That remains a stated Russian goal, while the current tanker points to the start of the announced supply route.
Trump announced on October 9 that Russia would immediately export 300,000 metric tons of diesel to the United States and global markets, followed by 500,000 tons in November and then 1 million tons "immediately thereafter." These volumes are part of an announced plan and do not, by themselves, confirm the arrival of subsequent shipments. Putin said global diesel prices fell by 5%-6% after the agreement, while a U.S. envoy described it as an example of cooperation between the two sides, according to Reuters. The tanker’s arrival on November 7 remains the next specified date in the current shipment’s journey. Additional supplies remain tied to the commitments announced by both sides and the Russian capacity Novak cited.