Russia Extends Diesel Export Ban Amid Supply Challenges

Russia is considering extending its diesel export ban due to domestic fuel shortages and price hikes caused by Ukrainian drone attacks. The ban, initially set for one month, may last until mid-August if conditions improve. Global diesel supplies and prices are impacted by this decision.

Russia is poised to prolong its diesel export ban, potentially until mid-August, contingent upon improvements in the domestic supply situation, according to sources familiar with the matter.

The restriction, part of broader measures introduced on July 8 to stabilize Russia's domestic fuel market amidst Ukrainian drone attacks on oil refineries, resulted in fuel shortages and price surges. Deputy Prime Minister Alexander Novak confirmed gasoline export restrictions would extend until the year's end.

The energy ministry declined comment as a government decision looms. Globally, energy markets have been disrupted, exacerbating diesel shortages and driving up prices, even in nations no longer importing from Moscow. This development pressures regular buyers, such as Brazil and Turkey, to vie for U.S. supplies against European demand.