Russia’s government extended its ban on gasoline, diesel, marine fuel, and gasoil exports through January 31, 2027, the cabinet announced Thursday, reversing promises to lift restrictions as soon as the domestic fuel market stabilized.
The decision came just five days after Deputy Prime Minister Alexander Novak said the diesel export ban would be removed once supplies recovered. Instead, the restrictions were tightened and expanded, covering all major petroleum products in what officials described as a necessary step to stabilize prices and ensure adequate supply across Russian regions.
The extension reflects the severity of damage to Russia’s refining infrastructure from repeated Ukrainian drone strikes. The Ryazan refinery, one of the country’s largest, halted processing entirely after a strike on July 29, cutting roughly 5 percent of national refining capacity. Several other facilities have been forced into unscheduled repairs throughout the summer.
Ukraine’s long-range drone campaign has increasingly targeted oil refineries and storage depots deep inside Russia, disrupting fuel production at a time when global energy markets are already strained by the Iran conflict. The attacks have forced Moscow to scramble for alternatives, including negotiations with Kazakhstan to process Russian crude oil at Kazakh refineries.
Kazakhstan’s energy ministry confirmed it is in discussions to process Russian-origin oil, with a portion of the resulting products to be shipped back to Russia. The arrangement highlights the extent of Russia’s refining shortfall and raises questions about the sustainability of its energy export revenues, a critical source of funding for the war effort.
The export ban is expected to push more crude onto global markets even as refined product supplies tighten, potentially widening the spread between crude and diesel prices. For European and Asian buyers who had relied on Russian refined products, the restrictions will further complicate procurement and add upward pressure on fuel costs.
Analysts said the indefinite extension signals that Russia’s fuel crisis is structural rather than temporary. With drone attacks continuing and repair timelines uncertain, the government appears to have concluded that domestic supply cannot be guaranteed without keeping a larger share of production within its borders.
Sources: Moscow Times, OilPrice.com, Reuters
Author: Finance Desk
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