Senators Ask Banks to Hold Russian Diesel Transactions

A bipartisan group of US lawmakers sent letters to major banks and port authorities warning them to pause facilitation of Russian diesel imports.

The correspondence demands that these entities preserve all records related to proposed or completed transactions dating back to September 1.

The letters cite the recent arrangement between President Donald Trump and Russian President Vladimir Putin, which involves the delivery of hundreds of thousands of metric tons of diesel.

The US Treasury Department issued General License 135 to grant a six-month exemption from certain sanctions for these shipments.

Democratic Senators Jeanne Shaheen, Ron Wyden, Sheldon Whitehouse, Chris Coons, and Elizabeth Warren joined with outgoing Republican Senator Thom Tillis and Representative Gregory Meeks in the demand.

The group urged companies not to purchase, transport, unload, store, finance, or distribute Russian-origin diesel until specific legal requirements were met.

Recipients included the chief executives of major US banks such as Goldman Sachs, as well as port authorities in Houston, Corpus Christi, and Beaumont in Texas, and New York/New Jersey.

Vessel-tracking data cited in the letters suggests ships carrying the fuel could arrive at Beaumont and New York/New Jersey by the end of October.

The lawmakers argued that the administration’s licensing action may violate the Ending Importation of Russian Oil Act of 2022.

They stated that this law generally prohibits imports unless the president certifies to Congress that Russia has ceased military hostilities in Ukraine.

The group also cited Section 216 of the Countering America’s Adversaries Through Sanctions Act, which requires congressional review before licensing actions that alter US foreign policy toward Russia.

The administration maintains that its action is lawful and consistent with previous decisions by the Treasury Department’s Office of Foreign Assets Control. White House spokesperson Taylor Rogers dismissed the initiative as politically motivated. She said Democrats have no agenda to improve lives and will continue their obsession with investigating President Trump. Representative Jamie Raskin separately warned fuel-industry associations that companies could face civil and criminal penalties, including up to 20 years in prison. Raskin argued that Trump’s move could not override statutory prohibitions. Michael Wain, a senior international trade policy adviser at the law firm Akin, noted that the license substantially reduces US sanctions risk for foreign firms that stay within its terms. He added that companies must still consider British, European Union, and other jurisdictions’ sanctions rules. Glen Howard, president of the Saratoga Foundation, said the letters would likely cause major US banks to freeze efforts to proceed with the sale. He argued that the administration failed to adequately consider the deal’s legal obstacles. Rachel Ziemba, a senior fellow at the Center for a New American Security, said the warnings reinforce her view that most Russian diesel cargos will go to countries outside the US. She described the move as mostly diplomatic theater. She said a meaningful increase in diesel supplies would likely require an energy cease-fire. Trump announced on October 9 that Moscow would initially deliver more than 300,000 metric tons of diesel. He said Russia would follow with another 500,000 tons in November and a further 1 million tons afterward. He added that Russia could supply an additional 3 million tons depending on the condition of its refineries. Traders said the Russian government began granting exemptions to its diesel export ban on October 1. Industry sources reported that Russian diesel production fell from about 175,000 tons a day in September to 160,000 tons a day in the first half of October. Production recovered toward 180,000 tons a day after new export quotas were introduced. Some cargoes may be resold to other countries in the Americas where demand for fuel remains strong.