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Why are oil traders refusing to buy Russian diesel after Trump-Putin deal?
Al Jazeera • • nation
Key Points:
- At least three tankers carrying Russian diesel to the US have changed course, casting doubt on President Trump's October deal with Putin to release Russian diesel to US and global markets despite sanctions.
- Since the deal, no Russian diesel has reached the US, where prices have nearly doubled amid the US-Israel conflict involving Iran; the first shipments are now being redirected to other regions like Brazil and the Mediterranean.
- The Trump-Putin agreement allowed Russian diesel imports until April 7 with a temporary US Treasury exemption, reversing previous sanctions, but details such as pricing, payment terms, and involved companies remain undisclosed.
- Traders and port authorities are reluctant to handle Russian diesel due to ongoing legal risks and congressional sanctions, with some US officials warning of penalties and questioning the legality of the Trump administration’s exemption.
- Experts predict the diverted diesel shipments will likely not arrive in the US, despite Kremlin assurances that the deal is proceeding and all diesel will find buyers.
