Russia Considers Total Diesel Export Ban to Address Fuel Shortages from Ukrainian Attacks

Russia's government is weighing a complete ban on diesel exports to stabilize its domestic fuel market, which is facing significant shortages and rising prices following sustained Ukrainian drone attacks on oil refineries and supply infrastructure. Deputy Prime Minister Alexander Novak announced the measure on June 23 during a meeting with President Vladimir Putin and Cabinet ministers, stating that the situation remains "challenging but controlled." The proposed diesel ban would complement existing restrictions already imposed on gasoline and jet fuel exports, as the government prioritizes domestic demand over foreign sales.

To combat the fuel crisis, Russian authorities have implemented an emergency response package including maximizing refinery production capacity, shortening maintenance periods, and postponing scheduled repairs to boost output. Russian oil companies have significantly increased fuel shipments to regions, and the Energy Ministry has established strict oversight of refinery maintenance schedules. The government is also preparing legislative amendments to incentivize greater domestic fuel deliveries, expected to be adopted in the coming days.

The fuel shortage has become increasingly visible across the country, with nearly two dozen regions introducing purchase restrictions on gasoline and diesel in recent weeks. The disruptions come during critical periods—the summer vacation season and agricultural farming season—and have driven prices upward. National gasoline prices rose 6.6% since the start of 2026, reaching 69.11 rubles per liter ($3.56 per gallon) as of mid-June. Russia's gasoline output has declined approximately 25% compared to June 2025 levels due to refinery damage and disruptions. Additionally, Rosneft CEO Igor Sechin reportedly requested in May that Putin implement temporary fuel distribution reforms, including mandatory routing of at least 30% of crude to domestic refineries and changes to fuel sales regulations to prevent hoarding by middlemen.

To address the shortage, Russia is pursuing alternative sourcing strategies, including plans to import fuel from Asia by sea and fast-tracking government subsidies for gasoline imports from India. The Energy Ministry created an industry-wide task force with major energy corporations earlier in June to ensure stable energy sector operations, publicly acknowledging Ukrainian drone strikes as the direct cause of market disruptions for the first time.