1st Russian ship carrying 40,000 tonnes of diesel heads to US after Trump-Putin deal

A tanker carrying 40,000 metric tons of Russian diesel is heading towards New York, ship-tracking data showed on Friday, following an agreement reached this month between Moscow and US President Donald Trump.Trump announced the surprise dealto import Russian diesel as part of his efforts to bring down soaring diesel prices ahead of November 3 US mid-term elections.Trump also waived parts of a new US sanctions law against Russia and threatening Europe with a US diesel export ban unless countries released more from their emergency reserves to help ease prices.The Malta-flagged medium-sized tanker Agioi Fanendes was loaded with 40,000 metric tons of ultra-low sulphur diesel in the Russian Baltic port of Primorsk on October 22, according to LSEG shipping data. It is expected to arrive in the United States on November 7. The identity of the buyer and seller were not immediately known. The cargo will be the first imported by the US since former President Joe Biden announced a ban on US imports of Russian oil and petroleum products in 2022.Russian Deputy Prime Minister Alexander Novak has said that additional shipments will follow as Russian and US companies work out contracts for the deliveries. Putin envoy Kirill Dmitriev, who also heads Russia's sovereign wealth fund, said last week that the US Treasury had asked the fund to help sort out tricky payment issues relating to the agreement.The deal also involved Russia agreeing to lift a self-imposed ban on diesel exports.Trump announced on October 9 that Russia would immediately export 300,000 metric tons, or 2.25 million barrels, to the US and global markets, followed by 500,000 tons in November and 1 million tons "immediately thereafter".Novak has said that Russia would be able to increase its diesel exports to its usual levels of 3-3.5 million tons per month by year-end.Last week, export cargoes were loaded in the Russian Baltic port of Primorsk, but their final destinations are not clear, with most tankers signalling Gibraltar, the Atlantic Coast or Port-Said, LSEG shipping data showed.Since the EU imposed a full embargo on imports of Russian oil products in February 2023 over the war in Ukraine, Russia has exported diesel mainly to Brazil and Turkey, as well as to African countries.- EndsWith Reuters inputs