Russian Diesel Will Likely Never Reach American Shores

Summary

The presenter argues that Russian-origin diesel is unlikely to be legally unloaded in the United States, despite reports that a tanker was heading there. A ship’s stated destination does not prove that its cargo will be imported: the vessel could change course, sell the cargo elsewhere, or wait for new instructions.

The presenter says a 2022 congressional ban on importing Russian petroleum products, including diesel, remains in force. In their view, a Treasury Department general license cannot override that law, and the executive branch cannot repeal it by order. The presenter therefore disputes claims that Russian diesel was already on its way to be imported into the U.S.

The Tanker’s Route

The presenter discusses the Maltese-flagged tanker Agway Fernandez, which was carrying about 40,000 metric tons of diesel from Primorsk, Russia. Its stated destination was New York, but it later changed its destination to “awaiting orders.”

The reason for the change is unknown. The presenter notes that Senator Richard Blumenthal wrote to the shipping company, warning that a U.S. sale or transfer could violate the import ban. Blumenthal reportedly sought information about the buyer, seller, charterer, insurer, terminal, distributor, and legal basis for the proposed import.

Potential Effects on Fuel Prices

Even if the cargo does not reach the U.S., Russian diesel entering other markets could affect global supply and, indirectly, American fuel prices. However, the presenter argues that a tanker’s route alone is not proof of an imminent U.S. import, and that one cargo is unlikely to sharply lower diesel prices.

Presenters and Contributors

The presenter is not identified in the subtitles. Robert Bryce is cited as a friend whose view the presenter references. Senator Richard Blumenthal is discussed, and Rory Johnston is mentioned as a guest on the American Power podcast.