US Lawmakers Warn Banks and Ports Over Russian Diesel Imports Amid Legal Doubts

A bipartisan group of US lawmakers has cautioned American banks, port authorities and fuel-industry organizations against helping bring Russian diesel into the country. They say doing so could expose companies to investigations and legal action, in a challenge to President Donald Trump's decision to ease restrictions on Russian fuel.

The letters went to the chief executives of major banks, including Goldman Sachs, and to the port authorities of Houston, Corpus Christi and Beaumont in Texas, as well as New York/New Jersey. The lawmakers argued that such imports may violate federal law and create civil and criminal liability. They also said the trade would raise national-security concerns by giving Moscow revenue to help fund its war against Ukraine.

The signatories include Democratic Senators Jeanne Shaheen, Ron Wyden, Sheldon Whitehouse, Chris Coons and Elizabeth Warren, outgoing Republican Senator Thom Tillis, and Representative Gregory Meeks, the top Democrat on the House Foreign Affairs Committee. "Any importation of Russian diesel into the US raises significant legal questions and may be subject to legal action, as well as congressional investigations," they wrote.

The dispute follows Trump's announcement of an arrangement with Russian President Vladimir Putin, under which Moscow would supply hundreds of thousands of metric tons of diesel to the United States. The Treasury Department then issued General License 135, a six-month exemption from certain sanctions restrictions. Trump announced the plan on October 9 and said Russia would initially deliver more than 300,000 metric tons, followed by 500,000 tons in November and 1 million tons afterward, with a possible further 3 million tons depending on the state of Russian refineries.

The lawmakers urged companies not to facilitate the purchase, transport, import, unloading, storage, financing or distribution of Russian-origin diesel until legal requirements are met. They also asked recipients to preserve records dating back to September 1, including contracts, shipping documents, payment records, port reservations and communications with suppliers and US officials. Companies were asked to confirm by October 28 that they had done so and to say whether they knew of any proposed or actual imports. Vessel-tracking data cited in the letters suggests ships could reach Beaumont and New York/New Jersey as early as the end of October.

At issue is whether the licensing action fits restrictions set by Congress. The lawmakers pointed to the Ending Importation of Russian Oil Act of 2022, which generally bars imports of Russian energy products unless the president certifies certain conditions, including that Russia has ceased hostilities in Ukraine. They also cited Section 216 of the Countering America's Adversaries Through Sanctions Act, which they say requires congressional review of certain licensing actions, a step they say the administration skipped. The administration maintains the action is lawful and consistent with earlier decisions by the Office of Foreign Assets Control. White House spokesperson Taylor Rogers called the effort politically motivated, saying Democrats would "continue their decade-long obsession with investigating President Trump."

The letters do not allege that any company has committed a crime. Separately, Representative Jamie Raskin, the top Democrat on the House Judiciary Committee, warned fuel-industry associations that importers could face penalties of up to 20 years in prison, and said companies could be held accountable "whether in this administration, or the next."

Experts offered differing views on the impact. Michael Wain of the law firm Akin said General License 135 substantially reduces US sanctions risk for foreign firms that stay within its terms, though they must still weigh British, European Union and other sanctions rules. Glen Howard of the Saratoga Foundation said the letters could make major banks freeze efforts to finance the sales. Rachel Ziemba of the Center for a New American Security called the episode mostly "diplomatic theater" and expects most cargoes to go outside the United States, possibly to other markets in the Americas.

Traders said Russia began granting exemptions to its diesel export ban on October 1 to allow shipments under the arrangement. Industry sources said Russian diesel output fell from about 175,000 tons a day in September to 160,000 tons a day in the first half of October, before recovering toward 180,000 tons a day after new export quotas. Democrats could gain significant investigative powers if they win control of one or both chambers in the November midterm elections.