Russia extends diesel and gasoline export bans through January 2027

The Russian government has extended its ban on gasoline and diesel exports through January 31, 2027, to stabilize its domestic market following repeated Ukrainian drone strikes on refineries. While direct producers will regain diesel export rights on September 1, 2026, the broader restrictions threaten to tighten a global diesel market that Goldman Sachs reports saw a 35% export drop in July 2026. This supply squeeze creates significant opportunities for Indian refiners like Reliance Industries, which are leveraging discounted Russian crude to ramp up fuel shipments to Europe.

Russian fuel export restrictions

• ▪Beginning September 1, 2026, direct producers will be exempt from the Russian export restrictions on diesel, marine fuel, and gas oil.
• ▪Russia's fuel export ban exempts shipments under international intergovernmental agreements and fuel exports for humanitarian assistance.
• ▪The Russian government extended its temporary export ban on gasoline, diesel, marine fuel, and gas oil from August 1, 2026, through January 31, 2027.

Ukrainian drone attacks on refineries

• ▪Repeated Ukrainian drone attacks on Russian oil refineries, storage terminals, and fuel infrastructure over the past two years have periodically reduced refining capacity and disrupted distribution networks.
• ▪Ukrainian drone strikes on Russian refining infrastructure triggered domestic fuel shortages, price spikes, and forced emergency measures such as temporarily relaxing fuel quality standards.

Domestic fuel security measures

• ▪Russian President Vladimir Putin signed a law in early July 2026 permitting the use of straight-run gasoline in the production of high-octane automotive fuel to ensure domestic market supply.
• ▪The Russian government adopted a temporary mechanism running through November 1, 2026, to guarantee diesel availability for farmers during the harvest season.

India's diesel export expansion

• ▪Reliance Industries loaded between 4 million and 5 million barrels of diesel from its Jamnagar refining complex for Europe in July 2026, marking its highest monthly shipments to the region in 10 months.
• ▪Indian refiners, including Reliance Industries, Nayara Energy, and Indian Oil Corp, have increased diesel exports by importing discounted Russian crude oil and processing it into higher-value petroleum products.

Global diesel market implications

• ▪Russian restrictions on refined fuel exports are expected to tighten global diesel availability, improving export prospects and refining margins for competing refiners in India.
• ▪Goldman Sachs estimates that global diesel exports fell by 35%, or roughly 2.6 million barrels per day, in July 2026, while total refinery throughput dropped by 6.5 million barrels per day from a year earlier.