New Jersey Governor Urges Ports to Reject Russian Diesel Cargoes

New Jersey Gov. Mikie Sherrill urged port and terminal operators to reject Russian diesel cargoes, saying the state would use its legal and regulatory powers to keep the fuel from entering through its ports.

In a Monday letter, Sherrill said multiple tankers had been dispatched to the United States and at least one may be headed toward the New Jersey coast. She urged operators not to purchase or unload the fuel and warned that efforts to profit from the trade would face penalties.

Sherrill called the fuel illegal and argued that the Russian Oil Act does not give the president or Treasury blanket authority to waive sanctions through licenses. The move could complicate President Donald Trump’s effort to bring Russian diesel into U.S. markets under a deal he announced with Russian President Vladimir Putin in early October.

A U.S. license sets out transactions that may proceed but does not establish how much fuel would reach U.S. buyers.

U.S. diesel averaged about $6.29 per gallon on Tuesday, down from $6.50 several weeks earlier. The proposed Russian shipments are intended to add supply as refining capacity remains tight.

Brian Mandell, executive vice president of marketing and commercial at Phillips 66, said on an earnings call that the company did not expect Russian supply to make much difference. He said the potential volume would be small compared with the amount of distillate offline.