Russia to extend diesel export curbs with exemptions for global markets

Moscow plans to extend restrictions on most diesel exports while allowing limited overseas shipments under a Trump-Putin deal, as Ukrainian refinery strikes threaten supplies

Russia plans to extend a ban on most diesel exports through January 2027, while still allowing some volumes to flow to the global market under an agreement between President Vladimir Putin and US President Donald Trump.

 

“A government order is currently being prepared” to extend the ban on diesel exports for three months, Tass reported, citing Deputy Prime Minister Alexander Novak. “However, as before, certain exceptions will be made for supplies to global markets.”

 

Next month, Russia plans to export about 2.15 million tonnes of diesel, up from 510,000 tonnes this month, according to Novak. Attacks on the nation’s refineries may lead to a reduction in export plans, but that won’t be significant, he said later. Meanwhile, Ukraine struck a major Rosneft PJSC refinery after a lull of about two weeks in targeting fuel-producing plants.

 

 

Russia relaxed its export ban this month after Trump said he was working with Putin to release Russian diesel back onto global markets.

 

The export volumes earmarked for October are too small to lower America’s sky-high diesel prices, according to analysts. Yet Novak also said Russia could restore monthly exports to as much as 3.5 million tonnes by year-end, provided the domestic market is sufficiently supplied. That would bring Russia’s share of global seaborne diesel flows back to about 10 per cent, but achieving this goal depends on the actions of Ukraine, whose attacks on refineries prompted the export ban back in July.

 

As of late October, a total of four tankers had departed Baltic ports with Russian diesel, according to Novak. Yet finding US buyers has proven challenging after Democratic lawmakers vowed to investigate the Trump-Putin deal if they take control of one or both chambers of Congress after the midterm elections next week.

 

One of the tankers, which earlier signalled “Atlantic Coast for Order”, has changed its destination to the Bahamas, according to vessel-tracking and shipping information compiled by Bloomberg. Three other tankers are still using vague Atlantic Coast or ‘For Order’ destinations, while none currently identifies a specific US port.