Russia ramps up diesel output to fulfil fuel supply deals with US

Production volumes rise amid new export quotas

Russian oil refining enterprises began ramping up diesel fuel output in October. This trend was recorded after the Russian government allocated special export quotas necessary to fulfil the agreements between the Kremlin and the United States of America. This is evidenced by data published by the Reuters agency.

Terms of the deal between Moscow and Washington

Under the reached agreement, Russia is to supply fuel to the US and other global markets. In exchange, Washington is temporarily lifting sanctions on Russian fuel. US President Donald Trump announced the agreement with Vladimir Putin on 9 October, and the Russian side subsequently confirmed the fact of reaching a consensus.

In accordance with the terms of the deal, Russia committed to immediately providing over 300,000 metric tonnes (equivalent to approximately 2.25 million barrels) of diesel. A further 500,000 tonnes is to be directed in November, followed by an additional million tonnes. Estimates suggest that, depending on the current state of Russian refineries, the volume of additional supplies could reach a further 3 million tonnes.

Mechanism for overcoming the export embargo

To implement these plans, the Russian government introduced exceptions to the current full ban on diesel fuel exports from 1 October. This ban was introduced in August with the aim of stabilising the domestic market. After the embargo came into force, oil companies reduced production, focusing solely on domestic needs and supplies to Central Asian countries based on intergovernmental agreements.

In the first half of October, daily diesel output in Russia fell to a level of around 160,000 tonnes, whereas in September this figure stood at 175,000 tonnes. However, after the allocation of new export quotas in mid-month, production began to rise, moving towards 180,000 tonnes a day.

Logistics and confirmation of regular deliveries

The seasonal decline in domestic consumption in Russia to 140,000 tonnes a day (driven by the end of the harvest and the summer travel season) creates the opportunity to free up over 1 million tonnes a month (a minimum of 40,000 tonnes a day) for export. Of this volume, between 200,000 and 300,000 tonnes is directed to neighbouring states.

According to data from the LSEG monitoring platform, a tanker flying the flag of Malta appeared in tracking systems on 23 October, carrying 40,000 tonnes of Russian diesel and heading to New York.

On the same day, Kremlin spokesman Dmitry Peskov confirmed that after the dispatch of the first tanker, supplies of Russian fuel to the US would be carried out on a regular basis. It is expected that the general ban on diesel fuel exports will remain in place, with shipments regulated exclusively through the quota mechanism, carefully monitoring the situation in the domestic market and the dynamics of production volumes.