Russia Bans Diesel Exports as Ukrainian Drone Strikes Hit Oil Facilities, Fuel Shortages Spread

According to Lianhe Zaobao citing CNN and The Economist, Russia has imposed a nationwide ban on diesel exports this week as Ukrainian drone attacks on oil facilities contributed to widespread fuel shortages or supply disruptions across Russia’s 83 regions. Russia’s Defense Ministry said on July 10 that air defenses shot down 376 Ukrainian drones overnight, and fires broke out at multiple oil sites, including the Ilsky refinery in Krasnodar and two oil product storage facilities in Rostov; a tanker was also hit and caught fire, with no casualties reported. CNN said more than 50 regions have acknowledged supply problems, and at least three regions—including Irkutsk and Transbaikal—declared a “high alert” status. Russian media reported motorists waiting for hours at gas stations, with some waiting up to 18 hours. President Vladimir Putin said there was only “a certain degree of shortage,” not a crisis, and called for rapidly expanding air defense production capacity. Kpler’s head of refining supply and modeling, Viktor Rytolia, estimated the strikes have left Russia’s gasoline output about 20% below domestic demand, with refinery throughput at a multi-year low. Putin said the government is also shortening refinery maintenance periods and increasing fuel imports; Kommersant reported Russia is considering allowing lower-quality gasoline into the market. Separately, Russia’s Finance Ministry reported that June posted Russia’s first monthly fiscal surplus of the year at 279 billion rubles (about SGD 4.7 billion), as oil and gas revenue rose 38% year over year. Economist Vlasova warned that a sharp pullback in oil prices could weaken oil and gas revenue in the second half, while rising military spending may exceed budget plans.