Russia Bans Diesel Exports After Ukraine Refinery Strikes — SkimNews
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- Russia fully banned diesel exports, announced by Deputy Prime Minister Alexander Novak alongside President Vladimir Putin, extending a prior partial ban on non-producers like fuel traders to now cover producers across the entire market.
- Ukraine's drone strikes on refineries have triggered fuel shortages across nearly all of Russia's 83 regions, with gas stations imposing rationing and some drivers waiting up to 18 hours in line, while NASA satellite imagery shows sharply reduced nighttime electric light in Crimea.
- Novak claimed earlier in the week that the Russian market was "fully supplied" with diesel and gasoline — a claim contradicted by visible pump shortages and rationing across the country.
- The export ban hits a global market already strained by the near-collapse of the US-Iran ceasefire and US reimposed sanctions on Iranian oil, raising fears that the Strait of Hormuz — through which one-fifth of the world's oil once flowed — will effectively shut again.
- Russia is the world's second-largest diesel exporter behind the US, with Turkey and Brazil as its biggest customers, who will now compete with Europe for US, Middle Eastern, and Indian barrels per Energy Aspects analyst Natalia Losada.
- Global benchmark diesel prices surged almost 13% on Wednesday, though Kpler analyst Davin Tonyan expects the ban to be short-lived given the "cost of forgoing export revenue."
Why it matters: Russia, the world's #2 diesel exporter, just pulled supply from the global market at the worst possible moment — as the Strait of Hormuz faces renewed closure risk and Iranian oil is sanctioned back offline. Turkey, Brazil, and European buyers must now compete for scarce US and Middle Eastern barrels, and benchmark diesel prices already jumped 13%.
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