New Jersey Gov. Sherrill Warns Ports to Turn Away Tankers Carrying Russian Diesel

New Jersey Gov. Mikie Sherrill sent letters to a dozen port and terminal operators warning them to turn away tankers carrying Russian diesel or face civil and criminal penalties. She argued the Trump administration lacks authority to override the import ban. The Treasury Department says its authorization is lawful.

New Jersey Gov. Mikie Sherrill, a Democrat, sent letters on Monday to a dozen port and terminal operators in her state. She warned that they will face severe penalties if they accept shipments from tankers carrying Russian diesel. Her letter, dated Nov. 2, said importing Russian diesel still violates federal law despite President Donald Trump's deal with Moscow. She has so far sent the letter to IMTT, Kinder Morgan and Phillips 66.

Warnings of penalties

Sherrill threatened serious civil and criminal consequences if operators allow those tankers into port. Her letter said any effort to profit from the illegal trade in Russian fuel will be met with harsh penalties. She urged operators to turn away any tanker seeking to use their facilities for such activity. Sherrill wrote that the statute of limitations for a violation is five years. She said operators could therefore face millions of dollars in penalties long after Trump has left office.

The legal argument

Sherrill argued the Trump administration lacked authority to override the import ban enacted by Congress more than four years ago. She said the Russian Oil Act does not give the president or Treasury blanket authority to waive sanctions through licenses. In her telling, the only avenue is a presidential certification that, among other things, Russia has agreed to withdraw its forces from Ukraine, which Trump has not done. She cited an Oct. 9 license from the Treasury's Office of Foreign Asset Control that purports to authorize transactions involving Russian diesel, including imports into the United States. She said accepting Russian fuel would violate federal law and that she was prepared to use every available legal and regulatory tool to block any tanker from offloading it in New Jersey. She said the state will look to ensure its ports, businesses and infrastructure are not exploited to advance interests against those of the United States and New Jersey.

Iran criticism

Sherrill said the U.S. is currently engaged in hostilities with Iran, whose military is responsible for killing 23 service members and wounding dozens of others. She criticized Trump's deal with Russia over Russia's role as an ally to Tehran. She wrote that by buying oil from Russia, a known supplier and financial supporter of Iran, Trump is funding a country engaged in hostilities with America.

The Russian diesel deal

On Oct. 9, Trump said Russia had agreed to supply diesel fuel to the U.S. and global markets following a call with Russian President Vladimir Putin. He said more than 300,000 metric tons would be available immediately, with larger shipments to follow. In a Truth Social post, he wrote of another 500,000 tons during November and 1,000,000 tons immediately thereafter. The administration decided last month to temporarily allow Russian diesel imports in an effort to ease soaring fuel prices.

Treasury's position and the tanker

The Treasury Department's sanctions exemption for Russian diesel runs until April 7. Treasury has maintained that its authorization complies with applicable law, and no court has ruled on the dispute. Sen. Richard Blumenthal, D-Conn., urged the Agioi Fanendes, a Malta-flagged tanker carrying around 40,000 tonnes of Russian diesel toward New York and New Jersey, to turn around. He argued a presidential license cannot override the 2022 federal ban on Russian energy imports. The tanker left Primorsk, Russia, on Oct. 23 and was scheduled to arrive in the US on Nov. 7. It recently changed its destination away from New York and is in the North Atlantic. It is unclear if any Russian fuel is headed toward New Jersey.