Russia is preparing to extend its diesel export ban

The government in Moscow put the ban into effect on July 8th, initially until July 31st. The background is fuel shortages as a result of Ukrainian drone attacks on Russian refineries and other oil infrastructure. Deputy Prime Minister Alexander Nowak said restrictions on gasoline exports would be extended until the end of the year, while the ban on diesel exports would be lifted as soon as the domestic market recovered. Kerosene exports are also restricted.

Russia is the world’s second largest exporter of diesel after the USA. As a result of the export ban, existing buyers such as Brazil and Turkey now have to compete more with European importers for US deliveries. Ukraine has stepped up its attacks on Russia’s oil infrastructure in recent weeks in an attempt to dry up an important source of money for the leadership in Moscow to finance its war of aggression that has been ongoing for almost four and a half years. This led to fuel shortages, long queues at gas stations and rising prices in Russia. To meet demand, oil-rich Russia was forced to import fuel from India and Kazakhstan.