Trump Calls Russian Oil Ban “Pretty Bad Law,” Offers No Change

President Donald Trump has questioned the US law banning Russian petroleum imports and said he would examine it, but announced no change in policy, amid a dispute over his administration’s clearance of Russian diesel.

“That probably makes it a pretty bad law. I’ll take a look at it, sure,” Trump said in the Oval Office, after a reporter told him that Congress had passed the legislation and President Joe Biden had signed it in 2022.

The reporter had asked about a vessel carrying Russian diesel across the Atlantic towards the US and the legal restrictions on unloading its cargo. Trump first asked whether the rule was part of the Jones Act, which governs shipping between US ports, and the reporter clarified that the question concerned the 2022 law. Trump gave no timeline, proposed amendment or explanation of how his administration would square its diesel authorisation with the ban, and did not say the ban had been lifted.

THE LICENCE

On October 9, the Treasury’s Office of Foreign Assets Control issued General License 135. It permits dealings otherwise barred under two sets of Russia-related sanctions regulations when they involve the sale, delivery, offloading or importation of Russian-origin diesel, including imports into the US. It runs until 12.01 am Eastern Daylight Time on April 7, 2027.

The licence covers only diesel, and does not reopen trade in all Russian petroleum products. It excludes withdrawals from accounts that Russia’s central bank, National Wealth Fund or Finance Ministry hold at US financial institutions.

THE LAW

The Ending Importation of Russian Oil Act, signed on April 8, 2022, separately bars imports of Russian products listed under Chapter 27 of the US tariff schedule. It sets a strict procedure for lifting the ban. The President must certify that Ukraine has accepted an agreement on Russia’s withdrawal and a halt to hostilities, that Russia no longer poses an immediate military threat to NATO members, and that Ukrainians’ right to choose their government is recognised.

The President must also consult congressional committees first. A 90-day review period then follows certification before any repeal takes effect, unless Congress passes a resolution of disapproval. The Treasury licence does not say these steps have been taken.

NEW JERSEY OBJECTS

New Jersey Governor Mikie Sherrill challenged the authorisation in a November 2 letter to port and terminal operators, three days before Trump’s remarks. “The Trump Administration’s authorisation of Russian fuel imports directly conflicts with federal law,” she wrote.

The law, Sherrill argued, does not give the executive blanket authority to waive the ban through licences. She warned companies against accepting deliveries of the fuel and said New Jersey would use every available legal and regulatory tool to block such imports.

HOW IT GOT HERE

The licence followed Trump’s announcement on October 9 that he had spoken with Russian President Vladimir Putin and agreed to supply Russian diesel to the US and global markets, a deal that angered Ukraine. Trump has said the arrangement would ease fuel prices ahead of the midterm elections.

With inputs from ANI