Sherrill Warns New Jersey Ports Over Russian Diesel Under License Allowing 300,000 Tons

Key Facts

New Jersey Gov. Mikie Sherrill warned port and terminal operators against buying or unloading Russian fuel bound for the East Coast, saying the state would use its available legal and regulatory tools. The warning came in a letter dated November 2, 2026, challenging a federal license that allows transactions to sell, deliver and import Russian diesel into the United States. Sherrill said unloading the fuel violates federal law and disputed the administration’s authority to grant the license. The letter does not announce a new executive ban or sanctions already imposed; it warns operators of potential legal risks. According to Reuters, Russia has sent several diesel tankers to the United States, and at least one may be heading for the New Jersey coast.

Sherrill’s objection is based on a law passed by Congress in April 2022 that bars imports of Russian products classified under Chapter 27 of the tariff schedule, a classification the governor says includes diesel. The law provides a presidential route to end the ban through a certification to Congress stating, among other conditions, that Russia has agreed to withdraw its forces and cease hostilities. The ban ends 90 calendar days after the certification is submitted, unless a resolution of disapproval is issued. Sherrill presents this framework as the basis for challenging the administration’s authority, while Office of Foreign Assets Control License No. 135 permits the sale, delivery and import of Russian diesel, including into the United States. The license is valid through April 7, 2027, according to S&P Global.

Reuters said the license allows the supply of more than 300,000 metric tons, or about 2.25 million barrels, to U.S. and global markets. The Associated Press reported that Russian Deputy Prime Minister Alexander Novak estimated the first shipment’s cargo at about 40,000 tons, or nearly 300,000 barrels. That cargo represents about 7% of the U.S. economy’s daily consumption, which is nearly 4 million barrels of diesel. The agency said the first tanker listed New York as its destination and was expected to arrive on November 7, and that it would be the first shipment of Russian diesel to reach the United States since July 2023. The route puts ports near New Jersey at the center of Sherrill’s warning.

The governor’s letter warned that participants could face civil and criminal penalties if the import is deemed illegal. Sherrill cited a provision setting the fine at the value of the merchandise introduced or attempted to be introduced, and a statute of limitations of 5 years. That means the warning extends to port and terminal operators who may take part in buying or unloading the fuel, without the letter announcing a penalty against any specific party. The governor framed the letter as an effort to use the state’s legal and regulatory powers to counter the shipments. The legal characterization remains the basis of her challenge to the license, not a final court ruling in the dispute.

The announcement of additional supplies on October 9 coincided with a $6.45-per-barrel drop in the U.S. ultra-low-sulfur diesel crack spread during the day, to $96.80, according to S&P Global. Retail prices, meanwhile, remained elevated: the Associated Press reported that the U.S. average diesel price was $6.53 per gallon on September 22, then reached $6.28 on October 9, compared with about $3.68 in October 2025. The agency linked higher diesel costs to increases in transportation and goods costs. Experts quoted by the agency, however, said the supplies might at most produce a slight local decline in New York and New Jersey, and possibly Philadelphia. Senators from both parties also called for License No. 135 to be revoked, saying its availability would offer Americans only limited relief and could support Russian export revenues.

According to the Associated Press, the agreement announced additional supplies of 500,000 tons in November, followed by 4 million tons later, with no date specified. Experts said the effect of these volumes on prices would remain limited. The announcement comes as Sherrill confronts port operators with her legal warning, while the federal license allows diesel imports through April 7, 2027. The tanker’s arrival in New York is also expected on November 7, according to tracking data cited by the agency. The next shipments’ route brings together the continuing federal authorization and the state’s challenge to its legality.