Russia Eases Environmental Rules for Domestic Fuel amid Shortages

Russia’s government has authorized some refineries to produce gasoline and diesel with higher sulfur content and other lower environmental specifications in a bid to alleviate the ongoing fuel shortages, Russian daily Kommersant reported on Monday.     

The government has extended the eased rules, which were introduced in the autumn of 2025, according to an unnamed source who spoke to Kommersant.   

Russia’s authorities are also scrambling to alleviate domestic fuel shortages by banning exports of refined petroleum products. Currently, gasoline exports are banned for all market participants, while traders are banned to export diesel until July 31.  

Early this month, Russia banned exports of jet fuel through November 30, 2026, as it looks to ensure domestic supply amid intensifying Ukrainian drone attacks on the Russian refining infrastructure.

Russia on June 1 announced it is temporarily banning jet fuel exports until the end of November to keep sufficient domestic aviation fuel supplies. Supplies under intergovernmental agreements are exempted from the ban, the Russian government has said.

Meanwhile, Russia’s authorities and regional governors are racing to assure residents there are no fuel shortages amid the intensified Ukrainian drone campaign at Russian refineries and fuel supply roads.

Ukraine has stepped up attacks this month on key fuel supply routes in its territories occupied by Russia, including Crimea and Mariupol. Several Russian regions have been experiencing fuel shortages as Ukraine hits Russian oil refineries.

Officials are playing down the fuel crisis.

Alexander Drozdenko, governor of the northwestern Leningrad region, said last week week that “Supplies are being delivered according to plan, there are no shortages,” as carried by Bloomberg.

Some isolated complaints about fuel shortages “do not reflect the overall situation,” the regional official said.

Earlier this month, Russia admitted for the first time that its oil production is falling.

Russia’s crude oil production has declined since the beginning of the year as a number of local refineries are under unscheduled repairs and maintenance, Russia’s Deputy Prime Minister Alexander Novak said, in the first public acknowledgement from Moscow that its output is flailing.

By Charles Kennedy for Oilprice.com

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