HOUSTON - United States companies are unlikely to import Russian diesel, even though President Donald Trump has temporarily waived some sanctions on Moscow's fuel exports, with a tanker carrying the first cargo now idling off the US East Coast.

Experts told Reuters that banks were likely to be reluctant to finance deals for Russian diesel, and that there were legal questions about whether the president's waiver was enough to allow the imports. There are also practical obstacles, because importers would need to blend the Russian diesel to meet US heating oil specifications.

Trump's plan was aimed at lowering diesel prices that rose sharply during the US-Israeli war on Iran. Under the plan, Russia would be allowed to export 300,000 tons, or 2.25 million barrels, of diesel to US and global markets immediately, followed by 500,000 tons in November and one million tons after that. Last month, the US Treasury Department issued a general licence temporarily permitting imports of Russian diesel.

First cargo halted off the coast

Shipping data showed on Tuesday that a tanker carrying the first cargo of Russian diesel for the United States had halted its voyage off the East Coast, and its operator said the destination had not yet been decided. Separate reporting on Wednesday said another tanker carrying Russian diesel had turned away from the US coast.

US Energy Secretary Chris Wright said on Tuesday that he was confident the idled tanker would help supply global markets even if it did not land at a US port. Speaking to reporters at an event in New Orleans, he said the administration wanted the diesel to reach world markets.

The price of diesel in the United States was 6.13 dollars per gallon on Wednesday, according to the American Automobile Association. That is down 20 cents a gallon from 6.33 dollars on the day Trump waived the sanctions in October, but up 63 per cent from 3.76 dollars before the US-Israeli war on Iran began in late February, according to the association's data.

Legal risks put buyers off

Analysts said the commercial case for importing the fuel was weak once the legal exposure was taken into account. Jeremy Paner, a partner at law firm Hughes Hubbard and Reed and a former US sanctions official, said buyers could damage their reputation and face legal risks if they took part in what he described as prohibited but authorised transactions, and that any savings could easily be wiped out by the cost of likely congressional investigations.

David Tannenbaum, director of sanctions consultancy Blackstone Compliance Services and a former US Treasury sanctions specialist, said banks were unlikely to finance deals linked to a Russian diesel trade, which could also breach sanctions in other countries. He said the money on offer for a single deal was small compared with the compliance costs and potential difficulties, and that every party downstream that handled the cargo could become a subject of investigation in Congress.

There has also been political opposition. Dozens of US senators, including six Republicans, have called on Trump to rescind the deal, saying it helps Russia fund attacks on Ukraine and brings no benefit to Americans. New Jersey Governor Mikie Sherrill has warned local port officials and terminal operators against accepting Russian diesel, saying those shipments would break federal law. US Representative Jamie Raskin has written to oil industry groups and the US Chamber of Commerce warning that importers would remain liable long after the current administration leaves office, citing a 10-year statute of limitations.

A Trump administration official said the temporary waiver was in compliance with all applicable laws. But analysts said cargoes that cannot discharge in the United States may instead be diverted to Brazil or other more traditional destinations for Russian diesel, leaving the first vessel's fate as a test of whether any further shipments will follow.