Russia Lifts Ban on Diesel Immediately

Update on diesel ban: The ban on Russian pipeline diesel exports via ports will be lifted immediately, which accounts for the majority of the exported diesel volumes, the government press service said via Telegram.

• Diesel pipelines flows to Russia’s western ports account for the bulk of exported volumes.
• The new regulation will set free around 90% of pre-ban seaborne volumes for export, or around 630kbpd, according to estimates from Viktor Katona, crude analyst at Kpler.
• Under the latest conditions, Russian companies must supply no less than 50% to the local market.
• Gray exporters, or companies that don’t produce their own diesel but ship volumes purchased on the domestic market, would now have to pay a prohibitively high export duty. That’s set at 50,000 rubles (almost $500) a ton, close to the current price of Russian inter-seasonal diesel on the nation’s SPIMEX commodity exchange.
• The government is also restoring in full its subsidies to refiners to ensure domestic fuel demand is met and refineries get compensation for the difference between fuel prices at home and abroad.