Industry executives are shunning the shipments over reputational concerns and the risk of criminal liability and congressional subpoenas if Democrats win control of the House in the Nov 3 midterm elections. A bipartisan group of seven lawmakers has already warned six Wall Street banks, fuel distributors and four port authorities to preserve transaction records, arguing that the Treasury Department’s license through April 7, 2027 cannot override a 2022 statutory ban on Russian petroleum imports.

With New Jersey Governor Mikie Sherrill threatening to block the fuel from entering the Port of New York and New Jersey and Senator Richard Blumenthal demanding that the Greek owner of the first tanker turn its ships around, the lead vessel carrying 40,000 tons of diesel has dropped New York as its destination and updated its tracking status to the “Atlantic coast.” Analysts said the unsold cargoes will likely divert to regular buyers of Russian fuel in the Americas such as Brazil, as US retail diesel prices average $6.35 a gallon.