Russia said on Friday it would consider a partial lifting of diesel export restrictions in case of overproduction, raising the prospect of a possible reprieve for global fuel markets strained by war and supply shortages.
Speaking in the upper chamber of the Russian parliament, Deputy Prime Minister Alexander Novak also said that the domestic diesel market is currently balanced.
Russia this week extended its ban on diesel exports for fuel producers until the end of October, adding further strain on the global energy market.
Russia was the world’s second-largest diesel exporter after the United States before it started to limit overseas sales this summer to meet the demand of the domestic market, supplies to which were dented by Ukrainian attacks on refineries.
Global fuel shortages and sharp price increases have been in focus, especially in the U.S., where diesel prices have shot to records over $6.50 a gallon as the wars in Iran and Ukraine constrain deliveries of fuel, a political risk for U.S. President Donald Trump ahead of the midterm elections.
“Today, the diesel market is balanced and supplies are sufficient. Although we extended the diesel export ban into October just a few days ago, we will continue to monitor the situation and, if diesel production exceeds domestic demand, we will consider partially reopening exports,” Novak said.
President Vladimir Putin said on Thursday that Russia will not supply its diesel to global energy markets until sanctions against Moscow are lifted.
Novak said that the situation with Ukrainian drone attacks on Russia’s energy infrastructure has remained “tense.”
He said Russia thwarted attacks on four refineries overnight, while the authorities were assessing the damage at one of the plants.
Novak also said that the damage caused by repeated raids on refineries has been significantly lower thanks to protection measures.
“This allows us to restore damaged equipment and bring facilities back into operation more quickly after repairs,” he said.
