HomeEverything
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
← All Stories

Russia allows lower-grade gasoline production amid fuel shortage

Created at 2 Jul · 11:30 PM1 source↑ Market-relevant
IN SHORT

Russia has permitted oil refineries to produce lower-quality Euro-3 gasoline through the end of the year, a move aimed at stabilizing domestic fuel supply following Ukrainian drone attacks on energy infrastructure. The decision allows for higher sulfur content, increasing pollution risks.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

150 mg/kgmaximum sulfur content for Euro-3 gasoline

Who's Involved

Russia
allowing lower-grade gasoline production
Mikhail Mishustin
Russian Prime Minister who signed the decree
Ukraine
conducting drone attacks on Russian oil infrastructure
Vladimir Putin
Russian President acknowledging fuel shortages
Russia allows lower-grade gasoline production amid fuel shortage

↳ Why This Matters

Russia's decision to allow lower-grade fuel production highlights the significant impact of Ukrainian attacks on its energy infrastructure, potentially affecting domestic supply and increasing pollution, while also underscoring the strategic importance of oil facilities in the ongoing conflict.

Key facts

  • Russia will allow oil refineries to produce lower-quality Euro-3 gasoline until the end of the year.
  • This measure is intended to address a growing fuel shortage caused by Ukrainian drone attacks on Russian oil infrastructure.
  • Euro-3 gasoline has a higher sulfur content, leading to increased pollution.
  • The decree permits gasoline with a maximum sulfur content of 150 mg/kg and prohibits its export.
  • Ukrainian strikes have targeted major Russian refineries, impacting production.

Russia has authorized its oil refineries to produce gasoline meeting the lower-quality Euro-3 emissions standards through the end of 2024, a move aimed at mitigating a domestic fuel shortage exacerbated by Ukrainian drone attacks on energy infrastructure. The government decree, signed by Prime Minister Mikhail Mishustin, permits the circulation of gasoline with a sulfur content of up to 150 mg/kg, a significant increase from the current Euro-5 standard, which carries risks of increased pollution.

These lower-grade fuel products will not carry the Eurasian Economic Union conformity mark and are restricted to domestic use. The decision comes as Russia faces visible fuel shortages, including long lines at gas stations and sales restrictions. President Vladimir Putin has acknowledged the challenges, particularly for agricultural producers, and stated plans to increase production and minimize the impact of Ukrainian strikes.

Kyiv views Russian oil refineries as legitimate military targets, arguing they supply both fuel and funding for Moscow's war efforts. The intensified Ukrainian strike campaign adds further pressure to an oil industry already impacted by Western sanctions.

Frequently asked questions

Russia is allowing lower-grade gasoline production to address a growing fuel shortage caused by Ukrainian drone attacks on its oil infrastructure.

Euro-3 gasoline has a higher sulfur content than the current Euro-5 standard, which can lead to increased safety risks and heavier pollution.

No, these products cannot be exported outside of Russia and will not bear the Eurasian Economic Union conformity mark.

Kyiv considers Russian oil refineries to be valid military targets as they produce fuel and funds for Russia's war machine.

What Happens Next

01Refineries will produce Euro-3 gasoline until the end of the year.
02Russia plans to increase production to minimize the impact of Ukrainian strikes.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence
CME Headlines
  • New Product Summary: Initial Listing of the 90% Lean Beef Trim and the 50% Lean Beef Trim Futures and Options Contracts — Effective July 20, 2026
    20 Jul · 3:51 PM
  • Initial Listing of the 90% Lean Beef Trim and the 50% Lean Beef Trim Futures and Options Contracts
    20 Jul · 8:37 AM
  • Performance Bond Requirements: Agriculture & Interest Rates — Effective July 02, 2026
    2 Jul · 8:56 PM

How It Developed

Russia signed a decree allowing refineries to produce Euro-3 gasoline.
The decision aims to stabilize fuel supply and prevent market destabilization.
Euro-3 gasoline has higher sulfur content than the current Euro-5 standard.
Companies can circulate gasoline with up to 150 mg/kg sulfur content.
These products cannot be exported and will not bear the EAEU conformity mark.
Russian President Vladimir Putin acknowledged fuel shortages and planned to increase production.
Ukraine has targeted major Russian oil refineries, disrupting production.
Kyiv considers Russian oil refineries valid military targets.

Sources

T1
Russia allows lower-grade gasoline production as Ukrainian attacks choke fuel supplyThe Kyiv Independent

Related Stories

Putin's economy strained by Ukrainian attacks on fuel infrastructure
2 Jul · 2:55 AM
Ukraine Strikes Spur Russian Fuel Crisis, Boosting EV Demand
2 Jul · 5:10 AM
Georgia refinery to halt Russian crude processing
2 Jul · 9:05 PM
Iran Exports Crude at 20% Premium Amid Rising Unsold Barrels
2 Jul · 6:10 AM
Chinese Teapots Buy Middle East Crude Amid Falling Prices
2 Jul · 9:10 AM