Russian Diesel Tankers Flee US Route as Trump-Putin Deal Hits Sanctions Wall

Key Points:

• Two Russian diesel tankers, Talisman and Leruo, have diverted from their original US Atlantic Coast destination, casting doubt on Trump's deal to supply Russian fuel to American buyers amid sanctions concerns.
• Leruo changed course to Brazil, while Talisman entered the Mediterranean off Algeria, signaling no confirmed buyer; a third tanker, Agioi Fanendes, still heads to New York but is also "for orders," indicating uncertainty.
• US companies are hesitant to purchase Russian diesel due to legal and sanctions risks, with warnings that the deal may violate a 2022 law banning Russian energy imports following Russia's invasion of Ukraine.
• The fuel deal announced by Trump after talks with Putin sparked bipartisan criticism and backlash from Ukraine, which warned that easing restrictions would finance Moscow's war efforts without addressing US fuel prices.
• Despite promises of large shipments, the first Russian diesel delivery was only 13% of the initial amount, and with two of three cargoes rerouted, US diesel inventories remain critically low, raising concerns over supply.