Russia Plans to Extend Diesel-Export Ban With Exemptions

Russia plans to extend a ban on most diesel exports through January 2027, while still allowing some volumes to flow to the global market under an agreement between President Vladimir Putin and US leader Donald Trump.

“A government order is currently being prepared” to extend the ban on diesel exports for three months, Tass reported, citing Deputy Prime Minister Alexander Novak. “However, as before, certain exceptions will be made for supplies to global markets.”

Next month Russia plans to export about 2.15 million tons of diesel after 510,000 tons this month, according to Novak.

Russia relaxed its export ban this month after Trump said he was working with Putin to release Russian diesel back onto global markets.

The export volumes earmarked for October are too small to lower America’s sky-high diesel prices, according to analysts. Yet Novak also said Russia could restore monthly exports to as much as 3.5 million tons by year-end, provided the domestic market is sufficiently supplied. That would bring Russia’s share of global seaborne diesel flows back to about 10%, but achieving this goal depends on the actions of Ukraine, whose attacks on refineries prompted the export ban back in July.

As of late October, a total of four tankers have departed Baltic ports with Russian diesel, according to Novak. Yet finding US buyers has proven challenging, after Democrat lawmakers vowed to investigate the Trump-Putin deal if they take control of one or both chambers of Congress after the midterm elections.

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