Lawmakers ask banks to pause Russian diesel deals

American banks and port authorities are being asked to hold transactions involving Russian diesel while Congress reviews the legal basis of the imports. A bipartisan group of lawmakers sent letters to chief executives on October 27, warning that the fuel deals could violate federal statutes. The officials want companies to preserve records of all proposed or completed transactions dating back to September 1.

The letters demand that recipients confirm by October 28 that they have implemented these preservation measures. They must also disclose if they know of any actual or proposed imports. The group includes Senators Jeanne Shaheen, Ron Wyden, Sheldon Whitehouse, Chris Coons, and Elizabeth Warren. Outgoing Republican Senator Thom Tillis and Representative Gregory Meeks joined the request. The letters went to major banks like Goldman Sachs and port authorities in Houston, Corpus Christi, Beaumont, and the New York/New Jersey area.

This action follows a deal announced by President Donald Trump on October 9. Under the agreement, Russia will supply hundreds of thousands of metric tons of diesel to the United States. The US Treasury Department issued General License 135 to allow these imports for six months. Trump said Moscow would deliver more than 300,000 metric tons initially. He projected additional shipments of 500,000 tons in November and 1 million tons afterward. Russia confirmed the arrangement after the announcement.

Vessel tracking data suggests ships carrying Russian diesel could reach Beaumont and the New York/New Jersey port complex by the end of October. The lawmakers argue that the administration’s licensing action conflicts with the Ending Importation of Russian Oil Act of 2022. That law generally bans Russian energy imports unless the president certifies specific conditions regarding the war in Ukraine. They also cite Section 216 of the Countering America’s Adversaries Through Sanctions Act, which they say requires congressional review before certain licensing changes.

The White House dismissed the initiative as politically motivated. Spokesperson Taylor Rogers said Democrats are using their decade-long obsession with investigating President Trump to improve the lives of Americans. She noted that the administration maintains its action is lawful and consistent with previous decisions by the Treasury Department’s Office of Foreign Assets Control. The administration believes its waivers are sufficient to overcome the legal obstacles identified by the lawmakers.

Representative Jamie Raskin, the top Democrat on the House Judiciary Committee, separately warned fuel-industry associations. He stated that companies importing Russian diesel could face civil and criminal penalties, including up to 20 years in prison. He argued that Trump’s move could not override statutory prohibitions. He warned that companies could be held accountable whether in this administration or the next.

Michael Wain, a senior international trade policy adviser at the law firm Akin, said General License 135 substantially reduces US sanctions risk for foreign firms. However, he noted that companies must still consider British and European Union sanctions rules. Glen Howard, president of the Saratoga Foundation, said the letters will likely cause major US banks to freeze efforts to proceed with the sale. He speculated that the administration made the decision without broader consultation.

Rachel Ziemba, a senior fellow at the Center for a New American Security, said the warnings may deter American buyers and financial institutions. She believes most Russian diesel cargoes will be sold outside the United States. Some cargoes could be resold to other countries in the Americas where demand for fuel remains strong. Russian diesel production fell to 160,000 tons a day in the first half of October before recovering toward 180,000 tons a day after new export quotas were introduced.