Key facts
- Russia has eased environmental rules for fuel production, allowing higher sulfur content.
- The relaxed standards are intended to combat domestic fuel shortages caused by Ukrainian drone attacks.
- Russia has also implemented export bans on gasoline, diesel, and jet fuel.
- Wholesale fuel prices have increased, and supply disruptions have been reported in several Russian regions.
- Regional officials are downplaying the extent of the fuel crisis.
Russia has eased environmental rules for fuel production, allowing higher sulfur content in gasoline and diesel, to combat domestic shortages exacerbated by Ukrainian drone attacks. The relaxed specifications, extended on May 1, permit gasoline with up to 150 parts per million of sulfur, significantly higher than in Europe, China, and India. In addition to easing quality standards, Russia has banned exports of gasoline, diesel, and jet fuel to prioritize domestic supply. Despite these measures, wholesale fuel prices have risen, and supply disruptions have been reported in approximately a dozen Russian regions. Regional officials, including Alexander Drozdenko of Leningrad, are downplaying the crisis, while Deputy Prime Minister Alexander Novak has acknowledged a decline in crude oil production due to refinery maintenance. Exports from Russia's western ports are expected to fall sharply in June.