Putin Bans Russian Diesel Exports and Starts Oil Imports After Ukrainian Strikes

Following a series of Ukrainian attacks on Russian oil refineries that severely disrupted fuel exports, Russia has imposed a ban on diesel exports and initiated imports of petroleum products to stabilize its domestic market. The Ukrainian military reported striking 16 refineries and key fuel terminals in Russia between January and June, disabling over 30% of Russia's refining capacity.

According to Reuters and international trade data from LSEG and Kpler, Russian diesel and gas exports via sea plummeted by 39% in June compared to May, and by 46% compared to June last year, dropping to just 1.8 million metric tons. Countries most affected by the export ban include Turkey and Brazil, which together accounted for over half of recent Russian diesel shipments, along with Egypt, Morocco, and Senegal.

Industry sources cited by Reuters revealed that Russia has already begun importing gasoline by sea from India, one of its largest crude oil buyers, with at least two tankers carrying approximately 60,000 tons of Indian fuel. Additionally, Russia is working to secure jet fuel imports from North Asia and aims to import around 400,000 tons of gasoline and other fuels monthly from various countries, including Belarus.

Analysts warn that Russia's export ban comes at a challenging time for the global fuel market, which is already experiencing low inventories. This move reflects Moscow's efforts to mitigate the impact of Ukrainian strikes on its energy sector and maintain domestic fuel supplies amid ongoing conflict.