US lawmakers warn banks that importing Russian diesel under Trump deal may be illegal

Letters to banks and ports

On Monday, 26 October, seven US lawmakers made public letters warning that importing Russian diesel could expose the recipients to criminal and civil liability. The letters are dated Saturday, 24 October, and were sent to the heads of JPMorgan Chase, Bank of America, Citi, Wells Fargo, Goldman Sachs and Morgan Stanley. The same letter went to port authorities in Houston, Beaumont and Corpus Christi in Texas, and to the port authority for New York and New Jersey. Senator Jeanne Shaheen leads the signatories, alongside Democratic senators Ron Wyden, Elizabeth Warren, Chris Coons and Sheldon Whitehouse, Republican Thom Tillis and House Democrat Gregory Meeks. The letters also warn that sanctions could fall on any company that knowingly buys Russian diesel or helps import it, not only on the importer.

The 2022 law at the center of the dispute

The lawmakers rely on a 2022 congressional law that bars imports of Russian oil, gas and petroleum products. Imports are prohibited unless the president certifies to Congress, after consultation, that Russia has ended its hostilities in Ukraine, poses no immediate military threat to NATO members and recognizes the right of Ukrainians to choose their government. The letters state that the president has not made that certification. The law also bars any sanctions exemption that significantly changes US policy toward Russia until Congress has reviewed it. The Treasury Department has repeatedly described the agreement as legal, although it also waived sanctions to help enable the deal.

How the deal unfolded

The arrangement dates from early October, when Trump and Vladimir Putin agreed to bring escalating Russian diesel exports to global and US markets. After a phone call between the two leaders on 9 October, Russia lifted the export ban it had imposed to address domestic shortages caused by Ukrainian drone attacks on refineries. A first ship carrying 40,000 tonnes of Russian diesel left the Baltic port of Primorsk for New York in the week of 19 October. Reports on Friday, 23 October, said a first tanker carrying Russian diesel was en route to New York. The letters followed on Saturday, 24 October, and became public two days later.

Export volumes Trump cited

After the agreement was announced, Trump said Russia would immediately export 300,000 tonnes, equal to 2.25 million barrels. He added that 500,000 tonnes would follow in November and then 1 million tonnes right after. These are figures Trump stated, not confirmed delivery schedules. For comparison, the United States exports about 1.5 million barrels of diesel a day.

Immediately300,000

November 2026500,000

Right after November1,000,000

Immediately

300000 tonnes

November 2026

500000 tonnes

Right after November

1000000 tonnes

Data from the article text

What the lawmakers want next

The letters ask recipients to preserve a wide range of documents and communications on proposed or actual transactions, citing anticipated congressional oversight. Banks and ports are urged not to enable the purchase, transport, importation, unloading, storage, financing or distribution of Russian diesel in the US. The letter also asks that no transactions for Russian diesel bound for other markets be facilitated under the recent sanctions waiver. Several signatories are in line to lead Senate committees on foreign relations, banking, finance and the judiciary if Democrats regain the Senate, and the probe would become a priority if Democrats win either chamber of Congress.