Russia Bans All Diesel Exports Through July 31

Russia banned all diesel exports on July 8 to prevent domestic shortages after Ukrainian drone strikes damaged its refineries. Deputy Prime Minister Alexander Novak announced the measure at a government meeting with President Vladimir Putin. The ban will remain in place through the end of July.

The policy closes a loophole that had allowed self-producing oil companies to continue selling diesel abroad. Exports of the fuel had previously been restricted only for traders and non-producers. Existing limits already cover most shipments of gasoline and jet fuel.

The decision follows a July 7 long-range Ukrainian strike that crippled Gazprom Neft’s Omsk refinery, Russia’s largest fuel processing plant. Ukrainian drone attacks have damaged several Russian refineries and driven crude-processing rates to multi-year lows. Many regions in Russia have imposed some degree of fuel rationing as a result of the damage.

Last year Russia supplied about 11 percent of global diesel, according to data compiled by Bloomberg from Vortexa Ltd. Even before the new ban, Russian diesel and gasoil exports had already declined sharply.