Russia is considering imposing restrictions on its exports of diesel and jet fuel, a move prompted by a significant decline in refinery output. This downturn in production is largely attributed to an increase in attacks from Ukraine on Russian energy infrastructure. Industry insiders, as reported by Interfax, indicate that oil companies were advised to reduce foreign sales of petroleum products following a recent meeting with Deputy Prime Minister Alexander Novak focused on the domestic fuel market.
According to sources familiar with the situation, the decision to ban exports of diesel and jet fuel is nearing finalization, although a specific implementation date has not yet been established. Such a ban, if enacted, would likely exert additional upward pressure on global fuel prices, given Russia's role as a major diesel exporter, typically selling approximately 40% of its production internationally. Russian refinery rates in April reportedly fell to 4.69 million barrels per day, the lowest in over 16 years, with ongoing attacks threatening further reductions.
The discussions around export curbs coincide with broader challenges in Russia's fuel market, which is also grappling with gasoline shortages and rising prices due to Ukrainian strikes. Russia's gasoline output last week was down about 25% from the daily average in June 2025. This has led to considerations of importing fuel and subsidizing it to cap prices, as well as a ban on gasoline and jet fuel exports already in place. Deputy Prime Minister Novak has emphasized the government's priority of ensuring uninterrupted domestic fuel supplies for Russian consumers.
Simultaneously, Russia's agricultural sector faces a severe fuel crisis, with refining capacity estimated to have fallen by 20-30% and diesel prices increasing by 40-90% compared to spring levels in some regions. Farmers have been advised by regional authorities, such as Tatarstan's Agriculture Minister Marat Zyabbarov, to build up 10-14 day diesel reserves to prevent harvest disruptions. These fuel shortages pose a significant risk to the 2026 harvest, potentially leading to crop losses and higher production costs.
