Russia Resumes Diesel Fuel Production for Global Markets
The Kremlin announced on Thursday that Russia is restarting its diesel fuel production for international buyers after reaching an agreement with President Donald Trump, which includes lifting restrictions that were put in place following Russia’s invasion of Ukraine in 2022.
Kremlin spokesman Dmitry Peskov mentioned during a call with reporters, “Right now, we are releasing fairly large quantities of diesel. This diesel is starting to enter global markets, which will have a positive effect on stabilizing oil markets.” He added, however, that this wouldn’t completely stabilize the markets, which is something to keep in mind.
Peskov acknowledged that the global energy markets are currently quite unstable. Many variables are impacting this downturn, including Russia’s difficulties in exporting significant amounts of oil and petroleum products.
He didn’t specify any countries aside from the United States that were ready to purchase Russian diesel, commenting that it’s not something that should be discussed publicly for obvious reasons.
Peskov criticized European leaders for their opposition to the deal, suggesting they were unable to see past their usual resistance to anything that appears to benefit Russia.
“We are observing a destructive stance from European nations. They not only failed to welcome this agreement but have also harshly criticized it—targeting both President Trump and the U.S. administration,” he stated.
According to ship trackers, a tanker carrying around 40,000 metric tons of ultra-low-sulfur diesel fuel left Russia’s Baltic port of Primorsk on Tuesday, heading for Morocco, which is facing very high diesel prices at the moment.
Russian Deputy Prime Minister Alexander Novak, who acts as President Vladimir Putin’s main spokesperson on oil-related issues, mentioned that Russia has lifted a self-imposed export ban on diesel fuel for most buyers outside Central Asia, where shipments have continued throughout this period.
“We will have to see how the situation evolves, but Russia has the capability to increase diesel exports. By year-end, these could reach 3.0 to 3.5 million metric tons per month, returning to pre-crisis levels,” he explained.
Novak added that global diesel prices have already decreased by “five to six percent” and are likely to improve further.
He, like Peskov, accused European lawmakers who oppose the deal of hypocrisy, as they continue to purchase other Russian energy products, amounting to $320.7 billion since the onset of the invasion of Ukraine.
On Friday, President Donald Trump indicated that Russia would be supplying over 300,000 metric tons of diesel fuel to American and global buyers immediately, with an additional 500,000 tons anticipated by November, and another million tons “immediately thereafter.”
Critics have argued that this export volume will increase revenue for Russia but is not sufficient to meet U.S. diesel demands, which currently hover around 3.85 million barrels per day. This is significantly less than what’s required to address the broader global supply issue, given that worldwide consumption is about 28 million barrels per day.
