Russia's diesel, gasoil exports fall to their lowest in a decade amid ban

Russia's exports of diesel and gasoil fell to their lowest level in at least a decade, with some volumes continuing to leak out despite the government's ban on exports.

Russia loaded 155,000 mt of both products in the week ended July 23, down 29% from 217,000 mt the previous week, according to S&P Global Commodities at Sea data. This is the lowest level since at least 2016, according to provisional CAS data.

For comparison, average weekly Russian diesel/gasoil exports totaled about 784,000 metric tons from January to May, CAS data shows.

Russia introduced a ban on diesel and gasoil exports effective July 9, further tightening global diesel markets and sending diesel cracks to record highs. But despite the ban, Russian diesel and gasoil exports have not yet disappeared from the market.

The Russian energy ministry did not respond to a request for comment from Platts, part of S&P Global Energy.

The diesel embargo does not affect supplies under intergovernmental agreements or shipments already in the customs process when the ban was implemented, according to Russian decrees.

Deputy Prime Minister Alexander Novak said July 25 that the diesel ban would be lifted "as the market recovers," without specifying a date. Novak said Russia would need to export diesel fuel to ensure refineries operate at full capacity once the domestic market is supplied.

At Russian ports, Primorsk loaded 40,000 mt of diesel/gasoil, down from 77,000 mt the previous week. Novorossiysk shipped 37,000 mt, down from 84,000 mt week over week.

St. Petersburg loaded 18,000 mt during the week after no loadings the previous week. Kavkaz port loaded 60,000 mt.

About 48,000 mt of diesel/gasoil loaded in the week ended July 23 are expected to be sent to Turkey, down from 137,000 mt the previous week. Russian diesel/gasoil loadings to Turkey from July 1 to 23 totaled about 215,000 mt, compared to 675,000 mt in June and 1.2 million mt in May.

About 30,000 mt were loaded for Egypt during the week, after no loadings the previous week. Loadings to Egypt from July 1 to 23 reached 93,000 mt, compared to 242,000 mt in June and 376,000 mt in May. Egypt frequently purchases high-sulfur gasoil to process into 10 parts per million diesel, to use as high-sulfur road fuel or to generate power.

In addition to the diesel ban, Russia restricted exports of gasoline and jet fuel. CAS data showed no exports of gasoline or jet fuel in the week ended July 23.

In contrast, the long-range ship Garnet reached the Russian port of Vitino in the White Sea around June 25, marking the first confirmed shipment of Indian fuel to Russia since Indian oil minister Hardeep Singh Puri said at the beginning of July that the country had the capacity to send oil products to Russia. Garnet received its 356,000-barrel cargo of gasoline in a transshipment near Egypt from the ship Agni, which had loaded the fuel at India's Vadinar terminal.

Novak said the gasoline export ban, set to expire July 31, will be extended until the end of 2026. Jet fuel restrictions remain in place until the end of November.

Ukraine's attacks on Russian oil and marine infrastructure have continued to pressure domestic markets, creating major fuel shortages. Novak said some Russian refineries had returned to operation after maintenance, but did not specify numbers.

While Europe has not been directly impacted by the Russian diesel export ban, as it has not imported Russian oil products since 2023, its options for supply from global markets have become much more limited. Before the ban, Russia was the world's second-largest supplier of diesel.

The Mediterranean diesel cargo price benchmark was assessed by Platts at $1,298.25/mt on July 24, the second highest since May 1 and nearly double the level at the end of February. The average price in June was $992.65, compared to $1,184.40 in May.