Russia Implements Diesel Export Ban to Stabilize Domestic Fuel Market

MOSCOW, July 8 (Reuters) – 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 gasoline shortages and price spikes.

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, chaired by President Vladimir Putin, 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.

Industry sources said last week that Russia had started seaborne imports of gasoline from India.

The government said the ban on diesel exports, which includes producers of the fuel, will be in place until July 31. Supplies under pre-existing government agreements, such as a deal with Mongolia, will be exempt from the restrictions.

Putin told the meeting that Ukraine was trying to damage Russia's economy.

"But most importantly, it seeks to create a sense of anxiety in society. We all understand that this goal is unattainable. The resilience of Russia's power system is very high — among the highest in the world," said Putin.

Ukraine says its attacks on Russian fuel facilities are designed to limit Russia's ability to wage war on it and force Moscow to start peace talks.

Benchmark European diesel margins LGOc1-LCOc1 rose to a record $60.17 per barrel after Russia announced the export ban, as analysts viewed a tightening market as a result of the ban.

"The Russian diesel export ban has landed at almost the worst possible time. The Iran war had already forced heavy inventory draws to bridge disrupted Middle Eastern supply, leaving diesel stocks in key markets thin," Sparta Commodities analyst Abhishek Kumar said, adding that Russia and its buyers will now compete aggressively with Europe for diesel imports from other suppliers.

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

Russia's exports of seaborne diesel and gasoil 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.

"They (Russia) basically already had an export ban in all but name. June (exports) were down to 400,000 barrels per day, July on track to be even lower," said one European trading source.

Russian diesel and gasoil exports were just 214,000 bpd over 1 to 8 July according to data from Kpler, compared with 793,000 bpd for the full month of July 2025 and 842,000 bpd in July 2021 prior to the Ukraine war.

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