Bipartisan lawmakers warn banks and ports against handling Russian diesel under new Treasury license

By Anselm Dorsey

WASHINGTON — Six senators and the top Democrat on the House Foreign Affairs Committee have told the chief executives of six major banks and the heads of four port authorities to preserve records on any Russian-origin diesel imports and to confirm in writing by Wednesday, Oct. 28, whether their organizations are involved in such transactions, according to a release from Sen. Jeanne Shaheen (D-N.H.), the ranking member of the Senate Foreign Relations Committee.

The letters, sent Saturday, Oct. 24, were signed by Shaheen and Sens. Ron Wyden (D-Ore.), Sheldon Whitehouse (D-R.I.), Chris Coons (D-Del.), Elizabeth Warren (D-Mass.) and Thom Tillis (R-N.C.), along with Rep. Gregory Meeks (D-N.Y.). They are addressed to the CEOs of JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley and to the heads of the port authorities of Houston, Corpus Christi and Beaumont in Texas and of New York and New Jersey. Shaheen’s office described the recipients as banks, port authorities and fuel distributors.

What the administration authorized

The imports rest on General License 135, which Treasury’s Office of Foreign Assets Control issued Oct. 9. The license authorizes transactions involving Russian-origin diesel fuel and runs through 12:01 a.m. EDT on April 7, 2027. It does not authorize dealings with Russia’s central bank, its National Wealth Fund or its Ministry of Finance, and it was signed by OFAC Director Bradley T. Smith. A client note from the law firm Herbert Smith Freehills Kramer describes the same terms.

President Trump has framed the deal as relief at the pump. “Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority,” he wrote, according to a Council on Foreign Relations explainer. The council reports that Russian President Vladimir Putin agreed to supply more than 300,000 tons immediately, 500,000 tons in November and then a million tons, and that the U.S. average retail diesel price had reached $6.18 a gallon by Oct. 12, up from $3.48. The Associated Press has also reported on the arrangement and its timing ahead of the Nov. 3 midterm elections.

What the lawmakers are asking

The lawmakers argue that the license conflicts with existing law. Their letters cite Section 2 of Public Law 117-109, the Ending Importation of Russian Oil Act of 2022, which generally bars Russian energy imports unless the president certifies to Congress, among other things, that Russia has ceased hostilities in Ukraine; Section 216 of the Countering America’s Adversaries Through Sanctions Act, which the lawmakers say bars licensing actions that significantly alter U.S. policy toward Russia before congressional review, a step they say the administration has not taken; and two customs statutes, 18 U.S.C. 545, on smuggling goods into the United States, and 19 U.S.C. 1595a, on forfeiture of goods imported contrary to law, according to Shaheen’s release.

“Any importation of Russian diesel into the U.S. raises significant legal questions and may be subject to legal action, as well as congressional investigations,” the lawmakers wrote. They added that “criminal penalties may apply to any company that knowingly buys Russian diesel or facilitates its importation, and not simply the importer of record,” and urged the recipients not to finance, ship, unload, store or distribute the fuel “unless and until the relevant statutory requirements have been satisfied.”

The letters demand that recipients preserve contracts, shipping and customs documents, payment records and communications, including communications with U.S. government officials since Sept. 1, 2026, and confirm by Oct. 28 that preservation measures are in place. Shaheen’s office said public reporting and vessel-tracking data indicate that ships carrying Russian diesel could reach Beaumont and New York and New Jersey as soon as the end of this month.

Tillis is the only Republican signer. The letters were not signed by Foreign Relations Chairman Jim Risch (R-Idaho) or House Foreign Affairs Chairman Brian Mast (R-Fla.).

Pending legislation

Bills in the House would go further than the letters. As the Inquisitor reported Oct. 24, Rep. Brian Fitzpatrick (R-Pa.) introduced H.R. 10866, the Ronald Reagan Peace Through Strength Act of 2026, on Oct. 22, and Meeks announced the Prohibit Corrupt Russia Oil Deals Act on Oct. 16 with 17 original cosponsors. Congress.gov shows no action on Fitzpatrick’s bill beyond its referral to the Ways and Means, Foreign Affairs and Intelligence committees.

The Senate is out until Nov. 9, with pro forma sessions on Oct. 29, Nov. 2 and Nov. 5, so the letters, rather than floor votes, are the main congressional pressure point before the Oct. 28 response date.

Who was contacted

The Inquisitor asked the Treasury Department, the White House, Chairman Risch’s committee press office, Ranking Member Shaheen’s office, Sen. Tillis’s office, Rep. Meeks’s office and the Port of Houston for comment, and will update this story with any response.

Photo: Sen. Jeanne Shaheen, D-N.H. U.S. Senate Photographic Studio, John Klemmer, via Wikimedia Commons (public domain).