Russia exempts gasoils, bunker fuel from export ban

Russia’s government has amended its fuel-export ban, excluding bunker fuel, gasoils and some middle distillates from the export ban imposed last week, according to the decree published in the nation’s legal database.

The amendments keep unchanged the key restrictions that ban exports of most gasoline and diesel. 

Russia, the world’s single biggest seaborne exporter of diesel-type fuels, including gasoils, imposed a temporary ban on exports of motor fuels last Thursday amid a sharp hike in domestic prices. 

Under the original restrictions, fuel cargoes already accepted for shipment by Russian Railways JSC before the ban came into force or those that had existing loading papers for seaborne transportation can still be exported. The amendments add state-controlled oil-pipeline operator Transneft PJSC to the entities that can accept auto fuels for export shipments in those circumstances.

While the government said the restrictions are temporary, it has set no end-date for the ban. Diesel prices in Europe jumped on concern the measure will aggravate global shortages. Some analysts see the measures as another example of Moscow weaponizing energy exports, as its invasion of Ukraine enters a 20th month.

Last year, Russia’s seaborne exports of all diesel-type fuel were about 0.95 million barrels a day, according to Vortexa data. That was about 3.4% of total global demand. Turkey, Brazil and Saudi Arabia were among the main destinations for the cargoes this year, following the western sanctions than banned most imports of Russian petroleum products into the European Union.