Senators Ask Banks to Hold Russian Diesel Deals

A bipartisan group of US lawmakers sent letters to major banks and port authorities on October 26. The documents urged these entities to pause transactions involving Russian diesel. The lawmakers warned that current imports might violate federal law. They cited potential civil and criminal liability for companies involved in the deals.

The intervention follows President Donald Trump's agreement with Russian President Vladimir Putin. Under this arrangement, Moscow will supply hundreds of thousands of metric tons of diesel to the United States. The US Treasury Department issued General License 135 in response. This license grants a six-month exemption from certain sanctions restrictions.

The letters targeted chief executives at major US banks, including Goldman Sachs. They also went to heads of port authorities in Houston, Corpus Christi, and Beaumont, Texas, as well as New York and New Jersey. The group asked recipients to confirm by October 28 that they had preserved relevant records. Companies were also asked to disclose knowledge of any proposed or actual Russian diesel imports.

Lawmakers demanded the preservation of contracts, shipping documents, and payment records. This includes communications with suppliers and US government officials dating back to September 1. They warned that ships carrying Russian diesel could arrive at Beaumont and New York/New Jersey by the end of October.

The dispute centers on whether the administration's licensing action aligns with congressional restrictions. Lawmakers cited the Ending Importation of Russian Oil Act of 2022. That law generally prohibits Russian energy imports unless the president certifies specific conditions. These include Russia ceasing military hostilities and recognizing Ukrainian self-determination.

The group also pointed to Section 216 of the Countering America’s Adversaries Through Sanctions Act. They argued this requires congressional review before licensing actions that alter foreign policy. The lawmakers said the administration did not fulfill this requirement. The administration maintains its action is lawful and consistent with previous Treasury decisions.

White House spokesperson Taylor Rogers dismissed the initiative as politically motivated. She stated that Democrats have no agenda to improve Americans' lives and will continue investigating President Trump. Representative Jamie Raskin, top Democrat on the House Judiciary Committee, separately warned fuel-industry associations. He noted that companies could face penalties including up to 20 years in prison.

Michael Wain, a senior international trade policy adviser at Akin, said the congressional pushback was noteworthy. He noted that General License 135 reduces US sanctions risk for foreign firms within its terms. However, he added that companies must still consider British and European Union sanctions rules. Glen Howard, president of the Saratoga Foundation, said the letters would likely cause banks to freeze efforts to proceed with the sale.

Rachel Ziemba, a senior fellow at the Center for a New American Security, said the warnings reinforced her view that most diesel cargoes would go to countries outside the US. She described the move as mostly diplomatic theater. She noted that a meaningful increase in supplies would likely require an energy cease-fire, which Russia was wary of agreeing to.

Trump announced the deal on October 9. He said Moscow would initially deliver more than 300,000 metric tons of diesel. Another 500,000 tons are planned for November, followed by 1 million tons afterward. Russia confirmed the arrangement after the announcement. Traders said the Russian government began granting exemptions to its diesel export ban on October 1.