Russia Bans Diesel Exports After Ukrainian Strikes

Russia introduced a ban on diesel exports on Wednesday as part of a raft of measures to support the domestic fuel market after systematic Ukrainian drone attacks on oil refineries triggered shortages and price spikes in some regions.

Drivers in many regions are facing hours-long lines to refuel, as intensifying Ukrainian strikes on Russian energy infrastructure squeeze supplies of diesel and gasoline.

Deputy Prime Minister Alexander Novak told a televised government meeting that the fuel situation remained complex and that “it is clear that the current situation at filling stations is causing concern among the public.”

“Today, a ban on diesel fuel exports was introduced, and this will make it possible to increase supplies to the domestic market,” he said, adding that Russia would start importing fuel in July.

The government said the ban, which includes producers of the fuel, will be in place until July 31.

Benchmark European diesel margins LGOc1-LCOc1 rose to a record $60.17 per barrel after Russia banned exports.

In June, Turkey and Brazil remained the dominant buyers, together absorbing at least half of the available cargoes, shipping data showed.

Russia’s exports of seaborne diesel and gasoil exports had already plunged in June, collapsing by 39% from the previous month to around 1.8 million metric tons and falling 46% from 3.35 million tons in the same month a year ago.

Beyond the main buyers, Morocco, Egypt and Senegal also emerged as major importers of Russian diesel cargoes in June, shipping data showed.

(Reuters)