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.
BAN TO STAY IN PLACE UNTIL JULY 31
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 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.