Kremlin Weighs Total Diesel Export Ban Amid Refinery Crisis

The proposed ban follows a significant contraction in Russian output, which remains the world’s second-largest diesel supplier. According to data from Vortexa, export volumes averaged 480,000 barrels per day between June 1 and 25, marking a 53% decline compared to the same period last year. This sharp drop has already tightened global markets, keeping diesel cracks in Northwest Europe above $40 per barrel—a notable contrast to crude oil prices, which have retreated to pre-war levels.

While the European Union and the United Kingdom maintain a total embargo on Russian oil, countries such as Brazil, Turkey, and various North African nations have become the primary outlets for these discounted supplies. A complete halt in shipments would leave these emerging markets scrambling for alternatives. Although local reports suggested a one-week delay in the decision-making process, the escalating frequency of refinery outages leaves the Kremlin with few options to balance domestic supply needs against the loss of vital export revenue.