U.S. Energy Secretary Doesn’t Rule Out More Russian Diesel Shipments
U.S. Energy Secretary Chris Wright confirmed on CNBC on Tuesday that a tanker carrying Russian oil has left a Russian port for the United States. He did not rule out further deliveries of Russian diesel to the market, explaining that it will depend on Moscow’s conduct regarding the war in Ukraine.
Wright said diesel shortages are a global problem. He stressed that President Donald Trump is trying a variety of diplomatic methods to achieve a goal that has so far eluded him: bringing the war in Ukraine to an end.
– Russia is not doing well. For Ukraine it is a catastrophe, and President Trump is trying to find a way to bring about peace, the secretary said.
The head of the department said that “Russia itself currently cannot export diesel” because it, too, is struggling with a shortage.
– That is why this one tanker that left a Russian port is something of a signal. If the war ends and the conflict eases, there will be a small economic incentive. But Russia has to change its behavior to get any tangible benefit from it, he added.
He explained that the agreement on diesel deliveries is “an incentive to end the war, which incidentally, even if only slightly, increases global diesel supplies.”
The Financial Times reported on Monday that three tankers carrying Russian diesel will reach the U.S. in the first half of November, one of them covered by European sanctions. According to the newspaper, the ships have a combined load of about 140,000 metric tons of diesel. The tankers may arrive in the U.S. on Nov. 7, 9 and 11, respectively.
Asked by CNBC about those reports, Wright acknowledged it is possible that more vessels carrying Russian diesel will reach the U.S.
– We introduced a temporary, six-month suspension of sanctions. It does not apply to Russian crude oil or any other Russian products – only to diesel, which Russia has not been exporting for many weeks, he noted.
He assured that the U.S. actions do not amount to a softening of its stance toward Russia. – Rather, we are trying to offer Russia a certain incentive, saying: You can scale back the conflict and produce a little more diesel than you consume yourselves. We will allow it to reach global markets, Wright concluded.
On Oct. 9, the U.S. president announced that he had reached an agreement with Russian leader Vladimir Putin on importing a total of 4.8 million metric tons of Russian diesel to the United States and global markets over the next few months.
Trump stated that Russia would immediately export 300,000 metric tons, or 2.25 million barrels, followed by 500,000 metric tons in November and 1 million metric tons “right after that.” The United States exports about 1.5 million barrels of diesel per day.
After the agreement was announced, Russia lifted its self-imposed ban on diesel exports. The ban had been introduced to address shortages on the domestic market caused by Ukrainian drone attacks on refineries.
Trump struck the deal with Putin amid growing political pressure over high diesel prices ahead of the U.S. congressional elections on Nov. 3.
From Washington, Natalia Dziurdzińska (PAP)
