The Malta-flagged medium-sized tanker Agioi Fanendes is heading to New York carrying Russian diesel, according to shipping data, with the Kremlin expecting deliveries to continue on a regular basis.
Kremlin spokesperson Dmitry Peskov said on October 23 that the first tanker carrying Russian diesel had departed for the United States.
“The first tanker has, in fact, set off toward its destinations — to its buyers — and [subsequent shipments] will continue on a regular basis,” Peskov said. He did not identify the vessel or disclose the buyers.
The Agioi Fanendes departed Russia’s port of Primorsk on October 22 and is expected to arrive in New York around November 6–7. The identity of the buyer and seller remains unclear.
Deputy Prime Minister Alexander Novak said on October 21 that the first Russian diesel shipment to the United States since 2022 was expected to comprise approximately 40,000 metric tons.
Eastern Mediterranean Maritime, which manages the Agioi Fanendes, could not be reached for comment on October 23.
While the vessel remains in the Baltic Sea, its destination could still change.
Market reaction
A European diesel trader said the delivery of these volumes to the United States would primarily redirect existing supply from Brazil rather than increase overall trade flows. The trader added that significantly larger volumes would be needed to affect the European market.
Shipping market participants have also reported potential opportunities for additional Russian cargoes. A Greece-based broker said shipments of urea ammonium nitrate (UAN) and clean petroleum products were emerging, with New York, Houston and Come By Chance in Canada among the potential destinations. However, no fixtures had been confirmed.
Further Russian-loading opportunities could also affect the European medium-range (MR) tanker market. Shipping sources indicated that additional Russian cargoes could draw vessels away from conventional European trade routes. At the same time, an increase in the number of shipowners willing to transport Russian cargoes could put downward pressure on freight rates for voyages involving Russian loadings.
Russia was the world’s second-largest diesel exporter before a major fuel crisis began in the country during the summer, following Ukrainian attacks on Russian refineries. In recent years, Turkey, Brazil and Egypt have been the main destinations for Russian diesel exports after the European Union banned Russian petroleum products in response to Russia’s full-scale invasion of Ukraine.
On October 9, the US Treasury Department’s Office of Foreign Assets Control granted a sanctions waiver permitting the sale, delivery and import of Russian-origin diesel, including into the United States. In response, the Russian government partially lifted the comprehensive diesel export ban introduced in July.
Ukrainian President Volodymyr Zelenskyy has faced pressure from US President Donald Trump to halt attacks on Russian refineries. Ukraine’s most recent reported strike on a Russian refinery took place on October 15, indicating a slowdown in its campaign against Russian energy infrastructure.
The extent to which Russia can increase diesel exports to global markets in the coming months remains uncertain.
On October 9, Novak said Russia was prepared to export 300,000 metric tons of diesel in October, 500,000 metric tons in November and 1 million metric tons in December. He subsequently said Russian diesel deliveries could reach as much as 3.5 million metric tons per month by the end of 2026, without explaining the difference between the figures.
Zelenskyy said on October 15 that US military officials had warned their Ukrainian counterparts that intelligence sharing could be suspended if Ukraine continued its attacks on Russian energy infrastructure. He added that Ukraine would only consider halting the strikes if Russia stopped attacking Ukrainian energy infrastructure and killing Ukrainian citizens.
The European benchmark price for ultra-low-sulfur diesel (ULSD) with a sulfur content of 10 parts per million, delivered on a cost, insurance and freight (CIF) basis to Northwest Europe, was assessed at $1,479 per metric ton on October 22, compared with $1,470.50 per metric ton on the previous day. Despite the increase, the price remained below the reported peak of $1,642.25 per metric ton in September. By comparison, the benchmark averaged $714.72 per metric ton in February, before the energy crisis associated with the Iran war drove prices higher.
