New Jersey’s governor Mikie Sherrill has threatened to block ships carrying Russian diesel from making deliveries in the state under the Trump administration’s temporary sanctions waiver. She has sent warning letters to a dozen state port and terminal operators (including IMTT, Kinder Morgan, and Phillips 66) advising them to turn away tankers carrying Russian diesel. Sherrill claims the deliveries violate federal law and warned businesses and individuals involved in purchasing or unloading Russian fuel that accepting deliveries would expose them to civil and criminal penalties equal to the value of the imported goods, potentially amounting to millions of dollars. Tanker traffic is reportedly was approaching the region, including the Malta-flagged vessel Agioi Fanendes—carrying roughly 40,000 metric tons of Russian diesel—with an expected arrival near the Port of New York and New Jersey around November 7, 2026, after leaving Primorsk, Russia, on October 23. Another tanker, the PVT Azura, was reportedly carrying nearly 109,000 barrels of diesel toward Norfolk, Virginia, however, due to terminal operators refusing to offload the fuel following the legal warnings and market uncertainty, the tankers have since reportedly turned away.
The Ending Importation of Russian Oil Act, passed by Congress in April 2022 after Russia launched its invasion of Ukraine, prohibits imports of Russian energy products, including diesel, subject to provisions governing the removal of restrictions. According to Sherrill, the administration cannot unilaterally bypass those requirements without obtaining the necessary congressional review and certifying that Russia has met conditions related to its invasion of Ukraine. Sherrill accused President Trump of undermining American security by allowing renewed Russian fuel imports, arguing that purchases of Russian diesel would generate revenue for Russia, which is continuing to attack Ukrainian cities and infrastructure. She also cited a five-year statute of limitations, meaning businesses could potentially face penalties long after President Trump leaves office. But Sherrill’s legal authority to prohibit unloading is also uncertain.
President Trump announced that Russia would initially supply 300,000 tons of diesel, followed by another 500,000 tons in November. That amount will have limited impact on global supplies, but it could get Russia to the negotiating table, which is the desired outcome. Energy Secretary Chris Wright defended the arrangement as “trying to put a carrot in front of Russia.” On November 3, AAA reported U.S. diesel prices at $6.29 per gallon. While the U.S. Navy has helped oil flows from the Middle East reach pre-war levels despite Iran’s hold on the Strait of Hormuz, gasoline and diesel prices remain high as Middle East shipments are below pre-war levels and global refineries have limited capacity because many have been shuttered where governments, particularly in Europe and the United States, have focused heavily on meeting U.N. net-zero climate goals.
U.S. refineries are running at over 90% and delaying maintenance to produce petroleum products needed domestically and abroad. While China has surpassed the United States in refining capacity, it has banned exports of petroleum products for several months during the Iran conflict, keeping its oil for domestic use instead and adding pressure to diesel prices, which are set on the global market. Even the European Union is seeking to reverse two decades of declining oil refining capacity after acknowledging it is short on refineries. About a quarter of the bloc’s refineries have closed over the past 20 years, reducing overall capacity by approximately 10% and making the bloc dependent on imports, much of which now comes from Middle Eastern refineries, which are obstructed by the closure of the Strait of Hormuz and damage to infrastructure.
While Europe is still deciding how to handle reduced refining capacity, the United States has expanded refinery capacity and is about to build a new refinery and restore a shuttered refinery, both in Texas and both using light, sweet oil produced in large volumes from shale formations in the United States. America First Refining will build a 168,000-barrel-per-day refinery in Brownsville, Texas, a deep-water port with direct rail and sea access, supported by investment from India’s Reliance Industries. Reliance owns and operates the world’s largest refinery. Valero will reopen a shuttered refinery in Houston with a daily processing capacity of 165,000 barrels, which may be operational by the end of next year.
Conclusion
President Trump’s October 9 agreement with Russian President Putin to provide 800,000 tons of diesel to the United States has reached an obstacle, with New Jersey Governor Mikie Sherrill threatening to block ships from her state. Her warning comes as three tankers carrying about 140,000 metric tons of Russian diesel approach the U.S. Atlantic coast, with at least one initially slated to enter near the Port of New York and New Jersey around November 7, 2026. Sherrill claims the deliveries violate federal law and warned businesses and individuals buying or unloading Russian fuel that accepting deliveries could expose them to civil and criminal penalties equal to the value of the imported goods, potentially amounting to millions of dollars. The Ending Importation of Russian Oil Act, passed by Congress in April 2022 after Russia launched its invasion of Ukraine, prohibits imports of Russian energy products, including diesel, subject to provisions governing the removal of restrictions. Sherrill’s legal authority to prohibit unloading the diesel is also uncertain, leaving it unclear what will happen to the diesel en route.
