Key facts
- A Russian diesel tanker carrying 40,000 metric tons is heading to New York.
- General License 135 allows Russian diesel sales globally until April 2027.
- The Graham Act waiver benefits Moscow's revenue and its largest customers.
- The U.S. has pressured Ukraine to stop striking Russian refineries.
- The waiver may lead to lighter compliance requirements for traders, shippers, and banks dealing with Russian diesel.
The U.S. has eased sanctions on Russian diesel following a phone call between President Donald Trump and Russian President Vladimir Putin, who reportedly persuaded Trump that Russian diesel could alleviate high energy prices. This led to Washington issuing General License 135 on October 9, which lifts U.S. sanctions on Russian diesel imposed in 2014 and 2022. The license, valid until April 2027, allows global markets to handle Russian diesel and dollar payments, a move presented as relief for American consumers. However, the deal's limited volume for the U.S. and the continued ban under the Ending Importation of Russian Oil Act of 2022 mean the diesel will likely go to global markets, benefiting Russia's oil companies. Additionally, President Trump waived the Graham Act sanctions, which had targeted major buyers of Russian energy with tariffs, a move that could immediately boost Moscow's revenue.