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Russia imposed a temporary ban on diesel exports until July 31, scrambling global fuel markets and sending diesel prices sharply higher as sustained Ukrainian drone attacks on Russian oil refineries continue to disrupt domestic fuel supplies.
The export restrictions, announced after a government meeting chaired by President Vladimir Putin, are aimed at easing fuel shortages that have left motorists waiting in long queues at petrol stations across several Russian regions. The shortages have emerged as repeated attacks on refining facilities have curtailed production of diesel and gasoline, forcing Moscow to prioritise domestic supply over exports.
The move immediately rippled through global energy markets, with benchmark European diesel margins surging to a record high and US diesel futures posting their biggest daily gain in more than four years, reflecting fears of an already tight market becoming even more constrained.
Deputy Prime Minister Alexander Novak acknowledged that Russia’s fuel market remains under severe pressure despite government intervention.
“The fuel situation remains complex. It is clear that the current situation at filling stations is causing concern among the public,” Novak said during the televised meeting.
He said the export ban would allow more diesel to remain within Russia and help improve supplies to domestic consumers. Novak also disclosed that Russia would begin importing fuel from July to bridge the supply gap — an unusual step for one of the world’s largest energy exporters.
Export restrictions to remain until July 31
According to the Russian government, the diesel export ban will remain in place until July 31 and will also apply to fuel producers. However, shipments under existing intergovernmental agreements, including supplies to Mongolia, will continue.
The restrictions represent Moscow’s latest attempt to stabilise the domestic fuel market after months of attacks on its energy infrastructure. Ukraine has repeatedly targeted Russian oil refineries and fuel depots, saying the strikes are intended to reduce Russia’s capacity to sustain its military campaign and increase economic pressure on the Kremlin.
Addressing the meeting, President Vladimir Putin accused Ukraine of trying to undermine Russia’s economy and sow panic among its citizens.
“But most importantly, it seeks to create a sense of anxiety in society. We all understand that this goal is unattainable,” Putin said.
He added that Russia’s power system remained among the most resilient in the world despite repeated attacks.
Diesel market tightens further
Energy analysts said the timing of Russia’s export restrictions could not have come at a worse moment for the global diesel market, which was already grappling with supply disruptions linked to refinery outages and geopolitical tensions.
Benchmark European diesel refining margins climbed to a record $60.17 per barrel after Russia announced the ban.
The diesel market has already been under pressure due to production cuts by OPEC+, refinery shutdowns and supply disruptions caused by regional conflicts.
Russian exports had already slumped
The export ban formalises what many traders say had already become a sharp decline in Russian diesel shipments.
According to shipping data, Russia’s seaborne diesel and gasoil exports fell 39 per cent in June from the previous month to around 1.8 million metric tonnes, a drop of 46 per cent from the same month last year.
One European trader said exports had already fallen so dramatically that the latest government order merely made official what the market had been experiencing.
“They basically already had an export ban in all but name,” the trader told Reuters.
Data from Kpler showed Russian diesel and gasoil exports averaged just 214,000 barrels per day between July 1 and July 8, compared with 793,000 barrels per day during July 2025 and 842,000 barrels per day in July 2021 before the Ukraine war.
Turkey and Brazil remained Russia’s biggest diesel buyers in June, accounting for at least half of available cargoes. Morocco, Egypt and Senegal also imported Russian diesel during the month.
Industry sources said last week that Russia had also begun importing gasoline from India by sea to supplement domestic supplies.
US diesel prices record biggest jump in four years
The announcement also sent US diesel prices sharply higher.
Ultra-low sulphur diesel futures on the New York Mercantile Exchange rose 11.6 per cent to $154.71 per barrel, marking the biggest single-day gain since March 2022 and the highest settlement in more than a month.
Although the United States no longer imports Russian diesel, analysts warned that higher international prices would eventually feed into the US market as countries dependent on Russian supplies seek replacement cargoes elsewhere.
US government data released on Wednesday showed domestic diesel and heating oil inventories fell by nearly 5 million barrels last week to 103.6 million barrels, around 7 per cent below the five-year average. At the same time, US distillate fuel exports averaged a record 1.7 million barrels per day for early July, while domestic demand stood at 4.3 million barrels per day, up 1.6 per cent from a year earlier.
Kloza estimated wholesale diesel prices could rise by more than 40 cents per gallon, increasing fuel costs for businesses and potentially adding fresh inflationary pressure.
Meanwhile, refining margins also surged, with the diesel crack spread climbing above $80 per barrel, its highest level since early April, boosting profit expectations for refiners.
Russia’s latest export ban underscores how the conflict in Ukraine is increasingly disrupting global energy supply chains. With diesel inventories already low in several major markets, analysts warn that prolonged supply disruptions could keep transport fuel prices elevated and add to inflationary pressures worldwide.
With inputs from agencies.
