New Jersey Gov. Mikie Sherrill (D) issued a warning to state port and terminal operators on Monday, Nov. 2, stating that accepting Russian diesel shipments would violate federal law. In a letter to industry officials, Sherrill argued that a 2022 congressional ban on Russian energy imports remains in effect despite recent executive actions intended to allow the fuel into U.S. markets. The governor stated that the state would use legal and regulatory authority to ensure its facilities are not used to receive these shipments.
The warning follows an announcement from the Treasury Department on Oct. 9, which stated it would temporarily waive sanctions to "allow the supply of Russian diesel to the global market." Additionally, President Donald Trump stated in an October post on Truth Social that Russian President Vladimir Putin had agreed to release millions of tons of diesel over a three-month period for global and U.S. use. These moves come amid rising energy costs, with AAA reporting the national average for diesel at $6.29 per gallon as of Tuesday, Nov. 3, up from $3.68 a year ago.
Sherrill contested the legality of the administration's actions, stating that Treasury officials do not have the authority to waive sanctions established by Congress in April 2022. The governor, a Navy veteran, said in a statement that importing the fuel helps finance Russia's military campaign in Ukraine and endangers U.S. service members. She noted that multiple tankers carrying Russian diesel are currently en route to the U.S., with at least one potentially headed for New Jersey.
The scale of the situation involves millions of tons of diesel fuel scheduled for release over a 90-day window. For the average U.S. household or commercial trucking business, the arrival or rejection of these shipments may impact fuel prices at the pump. Diesel prices reached a record high of $6.53 in September, and the administration’s plan to import Russian fuel was intended to lower these costs. However, if state-level opposition prevents the fuel from entering U.S. ports, the expected price relief for consumers and logistics companies could be delayed or diminished.
The disagreement sets a precedent regarding whether a governor can block trade authorized by the executive branch based on existing congressional statutes. This tension could lead to litigation between the state of New Jersey and the federal government or between terminal operators and state regulators. As of Nov. 3, the White House had not responded to requests for comment. Further developments are expected as tankers approach U.S. waters and terminal operators decide whether to accept or turn away the shipments.