Staff Reports
New Jersey Governor Mikie Sherrill just raised the stakes in the fight over President Donald Trump’s deal to allow Russian diesel into U.S. markets. In a set of sharply worded letters to about a dozen port and terminal operators, she told them to turn away tankers carrying Russian‑origin diesel or face “millions of dollars in penalties.” That one‑two punch has turned a messy federal decision into a potential state‑federal courtroom brawl — and the ports are now the reluctant players in a political chess match.
Mikie Sherrill’s warning to New Jersey ports — blunt and public
Sherrill’s office published the two‑page letters and a press release that leave no doubt about her aim. “Every port and terminal operator, intermediary, and buyer is on notice: do not help bring illegal Russian diesel into New Jersey,” she wrote. The governor cited federal customs statutes and warned operators they could be hit with civil and criminal liability — even years down the road — if they facilitate shipments. In short: accept this cargo and you could be on the hook for “millions of dollars.” Charming incentive to keep busy harbors empty.
The legal tangle: OFAC General License 135 versus the 2022 import ban
The immediate spark for Sherrill’s letters was a federal move: the Treasury’s Office of Foreign Assets Control issued General License No. 135, which says it “authoriz[es] … transactions prohibited … related to the sale, delivery, offloading, or importation, including importation into the United States, of diesel fuel of Russian Federation origin.” Meanwhile, Congress in 2022 passed the Ending Importation of Russian Oil Act — a statutory ban on Russian energy imports that includes a certified process for lifting the ban. That sets up a real legal question: can an administrative license quietly undo a statute? Lawyers on both sides smell a fight, and courts may have to sort whether OFAC’s licensing authority can trump a clear congressional ban.
Practical fallout: ports, insurers and private firms will choose caution
Regardless of who’s right on paper, the real world tends to favor caution. Private port operators, insurers, banks and shippers do not want to risk massive penalties or reputational damage. Several terminals named in coverage say they have not been notified of any deliveries; trackers show tankers switching destinations to “for orders.” That’s how commerce works when legal risk is murky — people pause. So even if the White House says diesel will flow, the private sector might quietly keep Russian barrels out of U.S. docks.
What comes next — politics, courts, and a noisy finish
Expect multiple fronts: congressional pressure and hearings from lawmakers who oppose the deal, state enforcement moves from New Jersey that could prompt quick lawsuits, and private‑sector caution that may make the president’s rollout more talk than cargo. For Republicans who like cheap fuel and energy competition, this moment is frustratingly complicated: Sherrill’s warning looks heavy‑handed and political, but the OFAC license is not an airtight legal shield. The likely result is litigation and uncertainty — which usually means the market and consumers wait while Washington and Trenton hash it out. Meanwhile, ports and businesses will do what they always do when things get risky: sit on their hands and wait for the verdict.
