Russia has imposed a ban on diesel exports effective July 8, as the country grapples with a severe fuel shortage triggered by systematic Ukrainian drone strikes on its oil refineries. The measure, announced by Deputy Prime Minister Alexander Novak during a televised government meeting chaired by President Vladimir Putin, will remain in place until July 31.
Fuel Shortage Sparks Public Concern
Drivers across multiple Russian regions are facing hours-long queues at filling stations, with fuel prices surging amid the crisis. Novak acknowledged the situation, stating, "It is clear that the current situation at filling stations is causing concern among the public." He added, "Today, a ban on diesel fuel exports was introduced, and this will make it possible to increase supplies to the domestic market." Russia also plans to start importing fuel in July to alleviate the shortage.
Russia Turns to India for Gasoline
Industry sources revealed last week that Russia had begun importing gasoline from India in a desperate attempt to meet domestic demand. Additionally, the government is in negotiations with other countries, including Kazakhstan, to purchase gasoline. The export ban includes fuel producers, but supplies under pre-existing government agreements, such as a deal with Mongolia, are exempt.
Putin Downplays Economic Impact
Putin told the meeting that Ukraine's attacks aim to damage Russia's economy and create societal anxiety, but he dismissed the threat. "We all understand that this goal is unattainable. The resilience of Russia's power system is very high - among the highest in the world," he said. Ukraine has stated that its targeted attacks on Russian fuel facilities are designed to limit Russia's ability to wage war and force Moscow into peace talks.
Exports Plummet Amid Crisis
Russia's seaborne diesel and gasoil exports collapsed in June, dropping 39% from May to around 1.8 million metric tons, and falling 46% from 3.35 million tons in June 2023. Putin estimated Russia's total gasoline reserves at 1.7 million metric tons, a 4% decline year-on-year. A European trading source told The Moscow Times, "They basically already had an export ban in all but name. June exports were down to 400,000 barrels per day, July on track to be even lower."
Putin's Approval Rating Drops
Last week, Putin's approval rating plunged at its fastest single-week pace since the 2022 invasion of Ukraine, falling from 70.4% to 66.9% between June 22 and June 28. His trust rating also declined notably, from 76.7% to 73.3%.
