Russia bans diesel exports as Ukrainian strikes cripple refining capacity

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10 days · 6 summary articles
Russia has imposed a temporary ban on diesel exports as Ukrainian drone strikes cripple its refining capacity, triggering acute fuel shortages across the country and forcing Moscow to resort to imports for the first time in years.
Deputy Prime Minister Alexander Novak announced the measure on Wednesday, stating that the export ban would allow domestic supplies to be prioritised amid what he described as a “difficult” situation in the fuel market. Speaking after a cabinet meeting with President Vladimir Putin, Novak said the government had also extended the ban to non-producing companies, effectively ending all diesel exports regardless of origin. “Today we introduced a ban on diesel exports, which will enable us to increase supplies to the domestic market,” he told reporters .
The decision follows weeks of sustained Ukrainian attacks on Russia’s energy infrastructure, including a strike on 6 July against the Omsk refinery—the last major processing plant yet to be targeted. Analysts estimate Russia’s refining output fell 25% in June compared with the same month in 2025, to 3.91 million barrels per day, the lowest level in more than two decades . Gasoline production dropped 17% year-on-year to 850,000 barrels per day, while diesel sales on the St. Petersburg exchange collapsed by 35.4% in June alone.
Putin framed the crisis as an attempt by Kyiv to destabilise Russia’s economy and society. “It is clear that the enemy is trying to damage the economy, but most importantly, it is trying to create a nervous situation in society,” he told a press conference. “This is an impossible task.” He insisted that Russia’s energy system retains “very high” spare capacity, one of the largest in the world, and dismissed reports of shortages as temporary .
The shortages have already forced regional restrictions on fuel purchases, with long queues at stations and limits on how much drivers can buy. In Crimea, which is supplied via routes increasingly vulnerable to Ukrainian strikes, civilian gasoline sales were suspended entirely in June. To ease pressure, the government is allowing refineries to produce lower-quality fuels and delaying planned maintenance work. For the first time, Russia will begin importing fuel this month, with Novak citing the need to stabilise supplies .
The crisis has also prompted a surge in demand for liquefied petroleum gas (LPG) conversions, with Russian motorists installing kits to run vehicles on alternative fuels. Call centres reported receiving 276 adaptation requests in a single day .
While some analysts predict a partial recovery in refining output between July and September, even optimistic forecasts suggest production will remain below pre-war levels. The European Union is meanwhile considering freezing its oil price cap to prevent Russia from benefiting from potential price spikes if sanctions on Iranian oil are tightened .
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