Russia’s government has reversed its ban on most diesel exports delivered to sea ports through pipelines, easing a significant portion of the restrictions imposed just last month.
According to a statement from the Kremlin, the government has decided to “remove limitations on diesel fuel exports transported to seaports via pipelines, as long as the manufacturer supplies a minimum of 50% of the diesel fuel produced to the domestic market.”
This move follows Russia’s earlier decision to indefinitely ban the export of diesel and gasoline to most countries, causing significant disruptions in global markets. It’s worth noting that the ban on gasoline exports remains in effect.
The initial measures were introduced on September 21 to stabilize domestic fuel prices, with Kremlin spokesperson Dmitry Peskov stating at the time that these restrictions would persist as long as needed to ensure market stability, as reported by Reuters.
The ban had led to a surge in diesel prices, as Russia is one of the world’s leading diesel suppliers and a major crude oil exporter.
Additionally, as part of the recent announcement, Russia’s government introduced a “protective duty” of 50,000 roubles ($495.6) per ton for resellers of petroleum products. This duty aims to curb potential “gray exports” carried out by companies operating through unauthorized channels.
The Kremlin clarified, “This action by the government is intended to prevent resellers from stockpiling fuel for future export once the current restrictions are lifted and to deter them from disguising class fuel as other products.”
In response to this news, diesel prices in Europe saw a decline. The ICE gas oil contract in London, a benchmark for diesel prices, traded 2.2% lower at $849.75 per ton during morning trading.
