EU Ships Carry Russian Diesel to US Amid Sanctions Controversy

• •The Agioi Fanendes is carrying 40,000 metric tons of Russian diesel to New York.
• •The shipment is controversial due to existing EU sanctions against Russian oil.
• •A U.S. Treasury general license permits the importation of Russian diesel until April 2027.

On October 23, reports emerged that the Agioi Fanendes, a Greek-owned tanker, was transporting 40,000 metric tons of Russian diesel to New York, despite ongoing EU sanctions. This shipment follows a deal made by U.S. President Donald Trump on October 9, which has drawn criticism from EU leaders. The tanker, which departed from Russia's Primorsk port, initially signaled New York as its destination but later changed its status to 'for orders,' indicating uncertainty about its final destination. EU sanctions allow for the transport of Russian oil only if purchased at or below a $100 per barrel price cap, a stipulation confirmed by Ukraine's sanctions chief. The U.S. Treasury's Office of Foreign Assets Control (OFAC) issued a general license on October 9, permitting transactions involving Russian diesel until April 2027. This shipment marks the first Russian petroleum product import to the U.S. since a ban was imposed in 2022. The situation raises questions about compliance with both EU and U.S. sanctions, as well as the implications for international energy markets.