Russia set to extend diesel export ban beyond September

Russia is preparing to extend its ban on most diesel exports beyond the end of September as continued Ukrainian attacks disrupt the country’s refining system, according to people familiar with the matter cited by Bloomberg.

The extension could last another month or longer. Russia’s Energy Ministry has not publicly confirmed the move.

Moscow first imposed restrictions on diesel exports in July as refinery outages pushed domestic processing rates lower. The government subsequently extended the measures through August and then through September 30 as repeated attacks kept several facilities offline. Reuters previously reported that Russian authorities were considering keeping restrictions in place for even longer.

The pressure on Russia’s refining system has continued. The Moscow refinery halted crude processing following a September 20 drone attack that damaged two primary processing units, with repairs expected to take several weeks, according to Reuters.

Russia was a major supplier to the seaborne diesel market before the restrictions. Its reduced exports have added to supply disruptions from the Middle East, helping push diesel prices to record levels in several markets. Reuters reported that global diesel supplies have been constrained by disruptions involving Russia, Saudi Arabia and the United Arab Emirates.

In Europe, the premium for diesel over crude has risen to about $84 a barrel, according to Bloomberg data, compared with roughly $28 at the end of February.

The squeeze extends beyond Europe. US diesel inventories recently fell to their lowest level for the time of year since records began in 1982, while analysts expect tight global supplies to persist into 2027.

Russia has continued supplying some countries covered by exemptions. Shipments to Kazakhstan, Kyrgyzstan, Mongolia and Tajikistan exceeded 370,000 metric tons in August, more than double July levels, even as the broader export restrictions remained in effect.