Russia Locks Down Fuel Exports Through 2027

Russia has extended its restrictions on gasoline and diesel exports until January 31, 2027, despite earlier claims that the domestic fuel market would recover by July. The new order affects gasoline, diesel, marine fuel, and gas oils, with some exporters allowed to resume shipments beginning September 1.

The original ban was put in place on July 8 after Ukrainian drone attacks damaged Russian refineries, leading to fuel shortages and price spikes across the country. Moscow had initially said that diesel exports would be reinstated once domestic supplies improved, but it appears this has been delayed until next year.

Russia is one of the world's largest diesel exporters, and Goldman Sachs estimates that global diesel exports fell 35% in July, or approximately 2.6 million barrels per day. The country's decision to extend its export restrictions will likely exacerbate supply shortages worldwide.