Ukrainian Forces Intensify Attacks on Energy Facilities; Russia Bans Diesel Exports, to Import Fuel Starting July

The Russian government announced on Wednesday (8th) that it will ban diesel exports effective immediately until July 31, aiming to stabilize domestic fuel supply.

Due to Ukraine's ongoing drone attacks on Russian refineries and energy facilities, gasoline and diesel supplies have tightened, worsening fuel station queues. In response, Russia has imposed a diesel export ban and will begin importing fuel starting in July to alleviate domestic market pressure.

Alexander Novak, Deputy Prime Minister of Russia, stated during a government meeting chaired by President Putin that the current fuel market situation remains highly complex. "It is clear that the situation at gas stations has raised public concern," he said. He confirmed that the government has decided to ban diesel exports to boost domestic supply and that Russia will begin importing fuel in July to help balance market demand.

Over recent months, Ukraine has continued using drones to attack Russian refineries, oil depots, and energy infrastructure, forcing several major refineries into unplanned shutdowns, leading to declines in diesel and gasoline supplies. In multiple regions of Russia, drivers are facing hours-long queues to refuel, and gasoline prices continue to rise.

The Russian government stated that the diesel export ban will last until July 31 and applies to all diesel producers, though exports under existing government agreements—such as supplies to Mongolia—will remain unrestricted.

President Putin stated that Ukraine aims to weaken Russia's economy and create social anxiety through attacks on energy infrastructure, but emphasized that Russia's power system is "one of the most resilient in the world," and Ukraine's objectives will not be achieved.

Ukraine has stated that its continued strikes on Russian fuel facilities are intended to weaken the Russian military's ability to sustain its war effort and to force Moscow back to the negotiating table.

Market analysts note that Russia's diesel export ban comes at a time of extreme global diesel supply tightness. Escalating tensions in the Middle East, particularly involving Iran, have already forced markets to draw down inventories to cover supply disruptions. Russia's further export restrictions could exacerbate global diesel market strain.

Data shows that after Russia announced the export ban, the European diesel crack spread briefly surged to $60.17 per barrel, a record high, reflecting market expectations of further supply contraction.

Abhishek Kumar, analyst at Sparta Commodities, stated that Russia's diesel export ban was implemented at nearly the worst possible time. The Iran conflict has already driven heavy inventory drawdowns, with major markets holding low diesel stocks. With Russia halting exports, Russia and its key buyers will now compete with Europe for diesel supplies from other sources, pushing global prices higher.

Shipping data indicates that Turkey and Brazil were Russia's largest diesel buyers in June, collectively absorbing at least half of export volumes. Morocco, Egypt, and Senegal have also emerged as key importers.

In fact, Russian diesel exports have already sharply declined in recent months. June's maritime exports of diesel and diesel distillates dropped to approximately 1.8 million metric tons, down 39% from May and 46% from the 3.35 million tons recorded in June of the previous year. Some European energy traders noted that Russia had already been operating under a de facto export ban, with June's export volumes falling to around 400,000 barrels per day, and July volumes expected to decline further.

Energy analytics firm Kpler reported that from July 1 to 8, 2025, Russia's average maritime exports of diesel and diesel distillates stood at just 214,000 barrels per day. This is far below the projected July 2025 monthly average of 793,000 barrels per day and significantly lower than the 842,000 barrels per day recorded in July 2021, before the Russia-Ukraine war. This indicates that Ukraine's sustained attacks on energy infrastructure have had a clear impact on Russia's fuel export capacity.