Staff Reports
Earlier this week New Jersey Governor Mikie Sherrill sent a blunt letter putting port and terminal operators “on notice” that accepting Russian‑origin diesel could expose them to civil and criminal penalties. The letter lands squarely in the middle of a legal fight between a Biden-era law that bans many Russian energy imports and a recent Treasury move that temporarily authorizes diesel shipments. In plain English: port bosses are stuck between a governor warning of multimillion‑dollar fines and a federal license that says the fuel can move.
Mikie Sherrill’s warning to New Jersey ports
Governor Sherrill cited the Ending Importation of Russian Oil Act and U.S. customs penalty law to warn ports that handling Russian diesel could be unlawful. She told operators, bluntly, “do not help bring illegal Russian diesel into New Jersey.” Her letter threatens enforcement under customs statutes that can impose penalties equal to the value of unlawfully imported goods — the very kind of multimillion‑dollar exposure she warns could come down on ports, brokers and buyers.
OFAC General License 135 vs. the 2022 import ban — a legal tangle
The federal government’s other shoe is OFAC General License 135, a Treasury administrative license that temporarily authorizes transactions tied to Russian‑origin diesel. That license was issued by the administration and aims to let diesel move into U.S. and global markets. But legal analysts say the license collides with the 2022 statutory ban, which requires specific presidential certification and congressional review to lift. That collision is why members of Congress and industry lawyers are already warning banks, ports and intermediaries about potential liability and record preservation.
Why New Jersey ports — and the economy — should care
Ports don’t like legal fog. A tanker showing up off the coast can freeze business when terminal operators must choose between following a state governor’s public threat or a federal license. Shipping trackers have even flagged tankers that once signaled East Coast intentions, which keeps the risk immediate, not theoretical. The practical effect is chilling: terminals could refuse lawful commerce out of fear, insurance and financing could tighten, and everyday energy supply chains could get tangled in courtroom fights and political theater.
Bottom line: this mess needs a real fix, not political bluster
Governor Sherrill has every right to raise legal objections, and national security questions deserve scrutiny. But threatening ports with ruinous penalties while the Treasury says the diesel may move turns commerce into a political battleground. Congress and the courts should sort whether a Treasury license can override a statute — not governors with press offices. Until then, New Jersey ports face an ugly choice: obey a state warning or follow a federal license and risk litigation. That’s not leadership; it’s a confusing roadblock that hurts workers, shippers and consumers, and it ought to be cleared up fast.
