Russia to Extend Diesel Ban and Quadruple Quotas, Sources Say
Russia will extend its diesel export ban beyond the October 31 expiration date while introducing a quota system designed to fulfill a new supply agreement with the United States, two people familiar with the discussions told Reuters. The policy adjustment maintains domestic fuel supply controls while allowing specific refiners to clear surplus production.
Quota Expansion to Prevent Domestic Gluts
Under the revised framework, export quotas will quadruple from October levels to reach 2 million metric tons, or roughly 0.5 million barrels per day, in November. The current export ban permitted limited shipments from several exempt refiners totaling 0.5 million tons in October. A new government order expected in early November will expand this list of exempt producers and set updated volume limits. If producers exhaust these allowances quickly, the government will consider increasing the quotas further.
Nominal diesel production in Russia exceeds domestic consumption by approximately 40%. Without sufficient export outlets, returning refineries to normal operating rates risks creating a domestic glut. Refinery utilization rose 25% at the end of October compared to the start of the month as drone attacks on facilities subsided.
Russia Resumes Diesel Exports as Refineries Recover
Deputy Prime Minister Alexander Novak stated on Tuesday that three tankers carrying Russian diesel to export markets were already under way, with a fourth scheduled to sail on October 28. Novak also noted that Russian refineries were recovering quickly from repair work.
The adjustments follow a diesel supply agreement between Moscow and Washington, reached after telephone discussions earlier in the month between Presidents Vladimir Putin and Donald Trump. An energy ceasefire between Russia and Ukraine, announced alongside the agreement, has enabled Moscow to increase fuel output. Alongside the quota-based shipments, diesel deliveries under existing intergovernmental agreements will also continue.
The Russian Energy Ministry did not respond to a request for comment regarding the forthcoming November export order.