Sherrill Weighs Blocking Tanker Carrying 40,000 Tons of Russian Diesel to New Jersey
Key Facts
New Jersey Gov. Mikie Sherrill said she is weighing options to block a shipment of Russian diesel from arriving at a port in the state, describing the deal that enabled it as "corrupt and illegal." The move concerns a tanker carrying about 40,000 metric tons of ultra-low-sulfur diesel, initially listed for the Port of New York and New Jersey with an expected arrival date of November 7. But the tanker’s recorded destination later became "for orders," indicating that the shipment’s route was no longer set for its initial U.S. destination. Sherrill’s stance is a practical test of the federal sanctions waiver in the face of state-level opposition. It also leaves the shipment’s fate in doubt as Moscow and Washington seek buyers for it.
The Maltese tanker Agioi Fanendes was the focus of coverage published on October 29, which reported that its cargo of ultra-low-sulfur diesel was initially bound for the Port of New York and New Jersey. Its expected arrival date was November 7, before its recorded destination appeared as "for orders." The Associated Press said data from maritime intelligence firm Kpler indicated the vessel was heading to New York and would arrive on the same date. The agency’s report added that the shipment would be the first delivery of Russian diesel to the United States since July 2023. The shipment’s maritime destination is now being watched, as the voyage record no longer confirms it remains on its initial U.S. route.
The shipment is part of a wave of movements that began in mid-October, when at least three tankers loaded with Russian fuel departed for the United States. The Washington Sun linked the ships’ departures to an executive order issued by President Donald Trump on October 16 that exempted Russian diesel from sanctions. Trump presented the deal as a way to bring additional supplies to the U.S. and global markets. The Associated Press quoted him as saying Russia would provide more than 300,000 tons immediately, then 500,000 tons in November, and 1 million tons "right after that." But shipments reaching the United States also depend on finding buyers willing to complete the purchases.
The shipments had no confirmed buyer when they were loaded onto the tankers, according to the Washington Sun. The report cited sources who said U.S. companies were unwilling to risk legal exposure or potential reputational damage from buying Russian diesel. The absence of a confirmed buyer weakens the prospects for carrying out the announced commercial route, even with a federal sanctions waiver in place. Rapidan Group said Moscow and Washington were still urgently seeking buyers. The group added: "We wouldn’t be surprised if the shipments end up in Brazil." A change in the tanker’s destination remains possible as buyers are sought, with no confirmation that the New Jersey shipment will take that route.
By contrast, a U.S. Treasury Department official said the general license issued by the Office of Foreign Assets Control was consistent with previous actions taken by the department. The official added: "We are committed to complying with applicable laws and regulations." The response puts the department’s position against Sherrill’s objection to the deal, with the administration relying on the federal license while the governor considers ways to stop the tanker from arriving at a port in the state. The Washington Sun report did not say Sherrill had already chosen an option, only that she was weighing those available. The dispute is therefore currently over the possibility of disrupting the shipment’s arrival, not an announced decision to block it.
In the fuel market, EL7 data showed that the front-month New York heating oil and ultra-low-sulfur diesel futures contract settled at $4.5875 a gallon on October 29, compared with $4.8152 on October 28. The price movement provides a dated market reading over two days, without establishing a link to the New Jersey governor’s threat. The inventory data in the previous draft do not support linking oil inventories to the state’s threat. As of October 30, the U.S. Energy Information Administration’s page listed the October 21 report as its latest weekly release. The page did not show a report dated October 28 or substantiate the inventory decline cited in the draft.