Russia’s fuel shipments show little sign of sanctions strain

Russia’s exports of fuels such as diesel and gasoline are on course to remain well above seasonal norms this month despite European Union sanctions that recently came into force.

Shipments of clean petroleum products — of which more than half are diesel-type fuel — stood at 1.9 million barrels a day during the first three weeks of April, according to data from Vortexa Ltd compiled by Bloomberg. If that rate continues for the rest of the month, exports will be their highest for the time of year since at least 2016.

In the lead-up to the European Union’s near-total ban on seaborne imports of Russian oil products earlier this year, there was concern that Russia wouldn’t be able to find a new home for all of its diesel exports, potentially forcing the country to cut refining runs.

So far, those fears have proven largely unfounded. Exports of diesel-type fuel in March hit the highest level on record in data going back to the start of 2016. The nation’s crude oil shipments to the international market have also shown little sign of dropping, even as the government says output has been cut.

While Russia’s overall clean petroleum product exports remain strong by historical standards, April’s shipments are on course for a month-on-month drop, which has occurred every year since 2016. The country’s refineries have also slightly reduced oil processing rates.

Much of Russia’s diesel-type fuel has been heading to Turkey, with barrels also going to north African countries including Morocco, Tunisia and Libya. Shipments to Brazil have also surged since EU sanctions came into force.