New Jersey Democratic Governor Mikie Sherrill warned port and terminal operators in the state against "purchasing or unloading the illegal Russian fuel currently bound for the east coast of the United States."
Sherrill's move threatens to complicate President Trump's efforts to bring Russian diesel into US markets to ease high industrial fuel prices amid a severe global refining squeeze fueled by Ukrainian drone attacks on Russian refineries and disruptions in the Strait of Hormuz.
In a Monday letter, Sherrill urged operators to turn away tankers carrying Russian diesel and said the state would use its legal and regulatory powers to prevent the shipments from entering through New Jersey.
Sherrill said, "Russia has since dispatched multiple diesel oil tankers to the United States, including at least one that may be headed for the New Jersey coast."
"The Russian Oil Act does not grant the President or Treasury Department blanket authority to waive these sanctions through licenses," the governor added.
She concluded, "Any effort to profit from the illegal trade in Russian fuel will be met with harsh penalties."
Related:
In early October, President Trump announced a deal with Russian President Putin to allow Russian diesel imports to flow into the US. AAA prices as of Tuesday morning show diesel prices at the pump averaging around $6.29 per gallon nationwide, down from $6.50 just weeks ago.
Brian Mandell, executive vice president of marketing and commercial at Phillips 66, recently told analysts on an earnings call, "We don't think Russia has enough distillate to make much of a difference, to be quite frank," adding, "That's a drop in the bucket compared to how much distillate is offline."
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