A Malta-flagged tanker carrying approximately 40,000 metric tons of Russian ultra-low-sulfur diesel departed from Primorsk on October 22 and is scheduled to arrive at the Port of New York and New Jersey on November 7. President Trump announced the broader arrangement on October 9, following a call with Vladimir Putin, stating that Russia would initially provide 300,000 tons of diesel with plans to increase shipments. The Treasury Department issued a license on the same day authorizing the trade, designated as OFAC General License 135, which remains valid through April 7, 2027.
The transaction has generated significant legal and political controversy. Congress enacted the Ending Importation of Russian Oil Act in spring 2022, placing a statutory ban on Russian fuel imports that can only be lifted under specific conditions, including a peace agreement accepted by Ukraine’s government and advance notice to Congress. Neither condition has been met. Legal experts note that while the Treasury license purports to authorize the transaction, it may not supersede the congressional statute. The administration contends the license complies with applicable law, but legal scholars indicate this argument faces substantial judicial uncertainty.
A practical challenge exists regarding liability exposure for any entity that accepts the cargo. Someone must take title to the fuel, a terminal must permit docking, financial institutions must process payments, and insurance must be obtained. Each party faces potential criminal and civil penalties under federal customs law for importing goods contrary to law. Notably, customs penalties can be pursued for up to five years after a shipment arrives, meaning liability could extend well beyond the current administration’s tenure. A president elected in 2028 could still pursue enforcement actions against a cargo arriving in November of this year. Senator Richard Blumenthal requested that the ship’s owner identify the buyer and other parties involved by October 31.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI