Russia considers restricting diesel exports after strikes on its refinery

Russia is considering restricting exports of diesel and aviation fuel amid a sharp decline in domestic production caused by regular Ukrainian attacks.

Source: Bloomberg, citing Interfax

Details: Informed sources said companies have been advised to reduce sales of petroleum products to foreign markets. One source said a decision to ban exports of diesel and aviation fuel is in its final stages, although the timing of any restrictions remains unclear.

If introduced, the ban could put additional pressure on global fuel prices, as Russia is one of the world's key diesel exporters, selling around 40% of its production abroad.

It has been widely reported that Ukraine has intensified strikes in recent months on Russian energy infrastructure, including oil refineries and related facilities.

According to estimates by analytics company OilX, Russia's average oil refining rate in April fell to 4.69 million barrels per day, the lowest level in more than 16 years. The continuing attacks threaten to reduce refining volumes even further at a time when Russia is entering a holiday season traditionally associated with increased fuel demand.

Russian Deputy Prime Minister Alexander Novak, following a meeting with industry representatives on Tuesday 26 May, instructed relevant agencies to continuously monitor the domestic market and stressed that ensuring uninterrupted fuel supplies for Russian consumers is currently the government's top priority.

Background: Ukraine's defence forces reported strikes on several important Russian military facilities in the temporarily occupied territories and confirmed the shutdown of the Syzran Oil Refinery in Samara Oblast.

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