Putin Acknowledges Fuel Crisis: Full Ban on Diesel Exports Under Consideration

Russian President Vladimir Putin has publicly acknowledged the fuel crisis affecting various regions of the country. During a meeting broadcast on state television, Putin noted that problems persist for both drivers and businesses, with queues forming at gas stations and the agricultural sector facing difficulties. The Russian leader recalled that temporary bans on gasoline and jet fuel exports have been imposed in the interests of domestic consumers and stated that authorities are evaluating whether a full ban on diesel exports is necessary. Putin said the country has begun using its fuel reserves, but that reserves remain at levels close to those of the same period last year. He noted that a working group is operating to ensure adequate fuel supply across the country and called for measures to ensure the agricultural sector has sufficient fuel stocks. Putin also addressed Ukraine's targeting of the oil sector with medium- and long-range strikes on industrial facilities in Russia, emphasizing the need to minimize the impact of terrorist attacks on civilian targets and infrastructure. In recent months, Ukraine has dealt heavy blows to Russia's refinery capacity by targeting critical facilities hundreds of kilometers from the front line. In the past 24 hours, the Slavyansk Refinery in the Krasnodar region and an oil facility in the Yaroslavl region were struck. These attacks are believed to have created a chain reaction, causing fuel shortages across the country. Moscow's major refinery is not expected to resume production before the end of the year. As Russia is one of the world's largest diesel exporters, a potential diesel export ban is feared to raise costs in the transportation, agriculture, and industrial sectors and trigger a new wave of inflation. This is not investment advice.