Russian diesel tankers alter US route

Two Russian diesel tankers that had set sail for the United States changed course on November 5, abandoning their intended destination along the Atlantic coast.

The Talisman, a 20-year-old vessel under US, UK, and EU sanctions, passed through the Strait of Gibraltar into the Mediterranean Sea. It is currently off the coast of Algeria and transmitting a signal of "for orders." The Leruo, a Sierra Leone-flagged tanker owned by Hong Kong interests and subject to UK, EU, and Canadian sanctions, switched its destination signal to "Brazil."

A third vessel, the Greek-owned Agioi Fanendes, remains on track for the US but is also signaling "for orders." Its owner, Eastern Mediterranean Maritime, told the Financial Times that this signal indicates the unloading port has not yet been confirmed. A fourth tanker, the Seychelles-owned Beast, loaded in Primorsk on October 27, continues toward the US with an "Atlantic" destination signal.

These diversions occur as US diesel supply conditions worsen. New data shows domestic stockpiles have fallen below 100 million barrels for the first time in more than 20 years. Analysts say a shortage of foreign cargoes threatens to deepen the deficit.

Political uncertainty appears to be driving the hesitation. New Jersey Governor Mikie Sherrill has warned that companies accepting Russian diesel face severe secondary sanctions. This follows reports that Trump administration representatives have privately urged American firms to take Russian cargoes as part of a "diesel deal" despite legal risks.

Matt Smith, an analyst at Kpler, noted that US buyers appear hesitant due to regulatory and legislative issues. He stated it would not be surprising if the Agioi Fanendes also diverted away from the US. Jacob Meldgaard, CEO of product tanker company Torm, said the situation shows that reintegrating Russia into the global economy is difficult, even with an administration attempting to facilitate the process.