Russia halts diesel exports amid domestic shortage, market strains

Russia has imposed a ban on product producers, including diesel, marine fuel and gas oil. A full ban on diesel fuel exports to stabilise supplies at home was announced by Deputy Prime Minister Alexander Novak during a meeting with President Vladimir Putin.

The ban, effective until July 31, extends restrictions to all petroleum.

Novak said Moscow will begin importing petroleum products in July and increase production volumes by sourcing lower-grade fuels.

He acknowledged that the domestic market remains “challenging” following Ukrainian drone strikes that damaged several refineries, temporarily reducing gasoline and diesel output.

The government had earlier imposed a temporary ban on aviation fuel exports through November 30, while restrictions on diesel exports initially applied only to non-diesel producers.

The new measures mark a rare reversal for Russia, which has historically been a major energy exporter. Kremlin spokesman Dmitry Peskov confirmed that Russia plans to buy gas from abroad to stabilise the market, a step not seen since the 1990s.

Ukraine’s General Staff reported that between January and June, strikes disabled more than 30 per cent of Russia’s refining capacity, hitting 16 major refineries and fuel terminals.

Putin admitted the attacks contributed to shortages but insisted the situation was “not critical” and that damaged facilities were being restored quickly.

Analysts say the ban underscores the strain on Russia’s energy sector as it battles both external attacks and internal supply imbalances.

For global markets, the move could tighten diesel availability, especially in Europe and Asia, where Russian exports have historically played a stabilising role.