Russia extends diesel export ban to end of year amid US deal

Russia will maintain its ban on diesel exports through the end of the year, according to two people familiar with the discussions. The government will simultaneously allow specific companies to ship fuel using a new quota system to satisfy a recent agreement with the United States.

The export restrictions are set to expire on October 31. Under the new framework, the state will quadruple the allowed export volume for November. The quota will rise to 2 million metric tons, equivalent to approximately 0.5 million barrels per day. Shipments based on existing intergovernmental agreements will continue alongside these new limits.

The policy shift follows a telephone conversation between Presidents Vladimir Putin and Donald Trump earlier this month. The leaders agreed on a diesel supply deal and an energy ceasefire with Ukraine. This pause in hostilities has enabled Moscow to boost fuel production. However, previous shortages in the first half of the year have kept the government focused on controlling the flow of oil products.

Deputy Prime Minister Alexander Novak stated on Tuesday that three tankers loaded with Russian diesel are currently en route to international markets. He added that a fourth vessel was scheduled to depart on October 28. Novak reported that domestic refineries are recovering rapidly from recent repairs. The sources indicated that refinery utilization rates increased by 25 percent from the beginning to the end of October, following a reduction in drone attacks on energy facilities.

The government had previously granted export exemptions to several refiners in October. Those initial quotas totaled 0.5 million tons. A new administrative order is expected in early November. It will expand the list of exempt refiners and establish updated export caps. Officials may raise the quotas further if the current allocations are consumed rapidly.

Domestic demand is currently lower than production capacity. Russian refineries produce roughly 40 percent more diesel than the country consumes. As operating rates return to normal levels, the industry requires international buyers to prevent an excess of fuel in the domestic market. The Energy Ministry did not reply to a request for comment.