Seven Senators Say Trump's Russian Diesel License Breaks the 2022 Import Ban, and Bessent Says They're Wrong
On October 11 seven senators from both parties told the administration to reverse its decision to let Russian diesel into the US. Republicans Susan Collins, Lisa Murkowski, Thom Tillis and John Curtis signed, with Democrats Jeanne Shaheen, Richard Blumenthal and Ron Wyden. “Congress explicitly banned Russian energy imports in 2022,” their statement said. “The Administration must immediately reverse course.”
Treasury Secretary Scott Bessent answered on Fox the same day: “anyone in Congress who says whether it’s an old bill or the current Lindsey Graham bill prohibits us from doing it is wrong.”
Photo: Islander, public domain via Wikimedia Commons
What Treasury did
On October 9 the Office of Foreign Assets Control issued General License 135, allowing transactions in Russian-origin diesel until April 7, 2027. The President announced that Russia would release more than 300,000 tons of diesel at once and 500,000 tons in November, with more to follow. Russia’s deputy prime minister, Alexander Novak, confirmed the first two tranches on October 12.
Treasury’s terrorism and financial intelligence office said the license is “consistent with similar actions previously taken by OFAC” and “in compliance with all applicable laws.” It bars payments from US accounts held by Russia’s central bank, sovereign wealth fund or finance ministry.
What the law says
The Ending Importation of Russian Oil Act, signed in April 2022, banned imports of Russian crude, fuels and coal. It lets the President lift the ban only by certifying a settlement that Ukraine accepts, after reporting to Congress at least 45 days ahead, and Congress can block that with a joint resolution of disapproval. The senators say none of that happened and that the administration didn’t consult them.
Tillis told NBC’s Meet the Press: “I do believe there’s a legitimate case for saying the president’s not following the law.” Senate Republican whip John Barrasso defended the President on CBS: “The president is balancing and has to make tough decisions.”
In the House, Republican Brian Fitzpatrick plans a bipartisan bill to block all Russian oil purchases, to be forced to the floor by discharge petition. Don Bacon says he’ll co-sponsor.
Why the White House did it
Diesel averaged $6.27 a gallon on October 12, according to AAA, up about 71% from a year ago. The peak was $6.53 on September 22. The war with Iran and the closure of much of the Strait of Hormuz have squeezed supply. Truckers and farmers pay the price first, and the midterms are three weeks away.
Critics put a figure on the other side. Retired Rear Admiral Mark Montgomery of the Foundation for Defense of Democracies said the deal “will provide 3 or 4 billion dollars to the Russian war machine.”
What happens next
Congress is in recess until after the election, so a resolution of disapproval can’t move before November. The more immediate test is the new Russia sanctions law, which requires tariffs on the largest buyers of Russian oil from around October 19 unless the President waives them. We covered that law and the diesel announcement in an earlier post. The diesel license suggests which way the White House is leaning.