Why are oil traders refusing to buy Russian diesel after Trump-Putin deal?

What the report says

Oil traders and shipping operators are steering away from Russian diesel cargoes bound for the United States, according to Al Jazeera, after a Trump-Putin understanding in October that was meant to temporarily allow Russian diesel to flow into US and global markets despite existing sanctions. The report says at least three tankers have changed course, and no Russian diesel had reached the US at the time of publication.

The article describes the deal as significant in volume but vague in execution. President Donald Trump said Russia would make more than 300,000 tonnes of diesel available right away, followed by additional shipments later, while the US Treasury issued a temporary sanctions exemption. However, the White House and the Kremlin have not publicly clarified the agreement’s written terms, pricing, payment arrangements or the companies involved. Al Jazeera notes that US diesel prices have remained elevated, but analysts say the first shipment would be too small to meaningfully ease supply conditions.

The main obstacle is legal uncertainty. Although the Treasury says the arrangement is lawful, US lawmakers, including New Jersey Governor Mikie Sherrill and several members of Congress, have warned ports, banks and fuel handlers that they could face penalties or liability for participating. That has left traders hesitant to bring the cargoes ashore. Some diverted vessels are now heading toward Brazil and the Mediterranean, while Russian officials insist the shipments will still find buyers.