Key facts
- Russia has extended its ban on gasoline and diesel exports until January 31, 2027.
- The new order covers gasoline, diesel, marine fuel, and gas oils.
- Producers will be allowed to export diesel, marine fuel, and gas oils starting September 1, but other exporters remain restricted.
- Gasoline restrictions will remain in place.
- Shipments under intergovernmental agreements or as humanitarian aid are exempt.
- Measures are in place to ensure fuel for farmers during harvest and for state institutions.
Russia has extended its restrictions on gasoline and diesel exports through January 31, 2027, a move that comes shortly after indicating the diesel ban would be lifted once the domestic market recovered. This decision signals ongoing challenges in Russia's fuel market, despite previous assurances of recovery.
The initial ban on diesel exports began on July 8 and was set to expire at the end of July, following Ukrainian drone attacks that disrupted refinery operations and led to domestic fuel shortages and price increases. Gasoline and jet fuel exports were already subject to restrictions.
The newly extended order encompasses gasoline, diesel, marine fuel, and gas oils. While Russian producers may be permitted to export diesel, marine fuel, and gas oils starting September 1, broader export restrictions will persist for other entities, and gasoline export limitations will remain in place.
Exemptions exist for shipments conducted under intergovernmental agreements or as humanitarian aid. Additionally, a temporary procedure until November 1 is being implemented to guarantee sufficient fuel supplies for farmers during the harvest season and for state and local institutions.
Deputy Prime Minister Alexander Novak had recently stated that several refineries had resumed operations, leading to improved conditions at fuel stations, though he acknowledged persistent issues in certain regions, particularly in Siberia.
The extended ban occurs amid a tightening global diesel market. Goldman Sachs estimates that global diesel exports decreased by approximately 35% in July, equating to about 2.6 million barrels per day, with total refinery throughput falling by 6.5 million barrels per day compared to the previous year. Historically, Russia has been a major diesel exporter, and retaining these barrels domestically reduces global availability for buyers already facing competition for limited supplies.