Russia to Partially Ban Diesel Exports Until Year-End Following Drone Attacks

Russia is set to introduce a partial ban on diesel exports until the end of the year to tackle shortages following a spate of Ukrainian drone attacks on Russian refineries but traders said they expected the measure to have little impact on fuel flows.

Russia's restrictions will only be applied to exporters who do not produce the fuel and whose share of exports is small.

Around three-quarters of diesel exports are shipped by producers via the North and South pipelines which lead, respectively, to Baltic and Black Sea ports. Those volumes will not be limited.

Diesel from non-producers is supplied mainly by rail to Central Asian countries, which also have intergovernmental agreements with Russia on fuel shipments, and these exports are also exempt from the new restrictions.

Russia also plans to extend the current gasoline export ban until the end of the year, restricting the export of oil products in order to curb fuel shortages in several regions.

According to industry sources, Russia produced almost 86 million metric tons of diesel in 2024 and exported some 31 million tons.

Russia has already introduced a prohibitive export tariff for non-producers of the fuel of 50,000 roubles ($598) per ton, which worsened the margin for traders and led to a decrease in supplies.

The wholesale price of diesel stands at around 70,000 roubles per ton on the St Petersburg exchange.

"According to analysts' estimates, the decline in Russia's diesel exports may reach 0-2%, and the number will be closer to zero," said a trader who declined to be named due to the sensitivity of the matter.

"The ban will not result in any influx of diesel fuel into the domestic market," another trading source said.

($1 = 83.5500 roubles)

(Reuters)