According to Bloomberg, Russian dictator Vladimir Putin's team is evaluating a scenario of restricting diesel and jet fuel exports amid an abnormal decrease in domestic production following daily attacks by Ukraine.
Points of attention
- The decline in oil refining levels in Russia, reaching the lowest point in more than 16 years in April, indicates the severe impact of Ukrainian strikes on the country's economy and energy infrastructure.
- Insights from sources indicate that the Kremlin may soon make a formal decision on export limitations, underlining the vulnerability of the Russian energy sector to external disruptions.
Ukraine's attacks have a significant impact on the Russian economy
According to anonymous sources, Russian companies are already being recommended to reduce the sale of petroleum products to foreign markets.
Another insider told the media that a decision to ban the export of diesel and aviation fuel could be officially made soon. However, the final date is still unknown.
If this does happen, it will put increased pressure on world prices for petroleum products.
What is important to understand is that the aggressor country, the Russian Federation, is one of the key exporters of diesel fuel — it accounts for 40% of all its production to foreign markets.
The Kremlin can do nothing about the fact that Ukraine is increasingly and more powerfully attacking Russian energy facilities, primarily oil refineries and infrastructure.
According to estimates by analytical company OilX, the average level of oil refining in Russia fell to 4.69 million barrels per day in April — the lowest level in more than 16 years.
