Russia Extends Diesel Export Ban Through October

Russian authorities will extend a nationwide ban on diesel exports for all fuel producers through October 31, Vedomosti reported, citing delayed refinery maintenance and the need to rebuild domestic fuel reserves ahead of winter. The restriction had been broadened in July — moving beyond traders and small refineries to cover every producer — and was originally set to lapse at the end of September. Domestic prices have risen amid the curbs and capacity losses. Diesel traded at 70,546 rubles a ton on the St. Petersburg commodity exchange in early September, while pump prices reached 88.44 rubles per liter on September 7, a roughly 18.4% increase since the start of the year. Russia’s Energy Ministry indicated the measures "may be adjusted" once supply volumes stabilize and reserves reach adequate levels, but did not specify what that threshold would be. Supply has been hit by outages at major facilities: Russia’s six largest diesel refineries produce about half the country’s supply, and three — Kirishi, Volgograd and NORSI — are either offline or operating at roughly a quarter of capacity following Ukrainian drone strikes. Kirishi is reported fully offline, Volgograd and NORSI are near 25% output, and Taneco was struck on Sunday. Those disruptions have coincided with a steep fall in exports: seaborne diesel shipments dropped below 1 million metric tons in June, from about 2.5 million tons a month a year earlier, with buyers such as Turkey and Brazil losing at least half their prior cargo allotments. The export ban and refinery hits sit within a wider international debate over the causes of reduced diesel flows and rising pump prices. U.S. President Donald Trump urged Ukraine on September 13 to stop striking Russian refineries, linking the attacks to higher U.S. gasoline and diesel prices, a claim contested by analysts. A KSE Institute study cited in reporting showed Gulf-related export losses between March and August of 152 million barrels — more than double Russia’s 68-million-barrel decline — and noted Russia’s seaborne diesel exports represent roughly 4% of global trade. U.S. diesel prices have also climbed, reaching a record $6.27 per gallon on Tuesday, which has prompted discussion among some U.S. lawmakers about export restrictions; the White House denied plans for such measures in August.