New Jersey Governor Challenges Federal Approval of Incoming Russian Diesel Tankers

In early November 2026, New Jersey Governor Mikie Sherrill warned state port and terminal operators against purchasing or offloading incoming Russian diesel fuel authorized by the Trump administration. Sherrill informed facility managers that assisting with these deliveries violates federal statutory law, threatening multimillion-dollar civil and criminal penalties under federal customs statutes if tankers dock along the New Jersey coast.

The confrontation follows an October 2026 deal between President Donald Trump and Russian President Vladimir Putin aimed at alleviating high U.S. fuel costs caused by a global refining squeeze, Ukrainian drone strikes on Russian facilities, and disruptions in the Strait of Hormuz. Following the agreement, the Treasury Department's Office of Foreign Assets Control issued General License No. 135 on October 9, 2026. Shortly thereafter, the tanker Agioi Fanendes departed Russia on October 22 carrying 40,000 tons of diesel bound for the Port of New York and New Jersey, with an expected arrival date of November 7, 2026.

Governor Sherrill and Senator Richard Blumenthal argue that General License No. 135 directly conflicts with the Ending Importation of Russian Oil Act, enacted by Congress in April 2022 following Russia's invasion of Ukraine. Sherrill noted that the 2022 statute prohibits Russian petroleum imports and allows the ban to be lifted only if the president formally certifies to Congress that Russian forces have withdrawn from Ukraine. Citing 19 U.S.C. § 1595a(b), Sherrill warned terminal operators that participating in unlawful importations carries liability equal to the full market value of the cargo, emphasizing that executive waivers will not protect businesses within the five-year statute of limitations.

Market experts and industry leaders have expressed skepticism regarding the impact of the shipments. GasBuddy analyst Patrick DeHaan noted that while the announcement might temporarily lower pump prices by 10 to 20 cents per gallon, few domestic oil companies appear willing to purchase the fuel due to legal risks. Similarly, Phillips 66 executive Brian Mandell characterized the Russian supply as a drop in the bucket compared to global supply offline. Nationwide diesel prices averaged $6.29 per gallon when the warnings were issued.

In April 2022, Congress passed and President Joe Biden signed the Ending Importation of Russian Oil Act in response to Russia's full-scale invasion of Ukraine. The legislation codified a strict ban on importing Russian crude oil, diesel, and other refined petroleum products into the United States under Chapter 27 of the Harmonized Tariff Schedule. Under the statute, the import prohibition can only be terminated if the president submits a formal certification to Congress verifying that Russia has halted aggression and withdrawn all military forces from Ukrainian territory.

Global energy markets faced severe tightness in late 2026 due to cumulative factors, including Ukrainian drone attacks against Russian petroleum refining infrastructure and security disruptions along key maritime choke points in the Strait of Hormuz. These constraints drove U.S. nationwide diesel prices up to $6.50 per gallon before settling near $6.29. Seeking price relief for industrial consumers, the Trump administration negotiated a bilateral fuel arrangement with Moscow and issued Treasury waivers. However, state officials and federal lawmakers maintain that executive actions cannot supersede statutory acts of Congress, creating significant regulatory exposure for maritime logistical operators.