Russia reinstates its export embargo on gasoline until the end of 2024

Following significant price increases, the Russian government said on Wednesday that it was reimposing a six-month gasoline export ban in an effort to “maintain a stable situation” on the local fuel market.

“Brought in a restriction on exports of petrol from September 1 to December 31, 2024,” the administration stated in a statement.

The measure is intended to keep prices stable “during a period of continued seasonal demand and planned repairs on oil refineries”, the government said.

Russia in March introduced a six-month ban on petrol exports, but then suspended it temporarily between May and July, saying the domestic market was saturated.

The new restriction will not affect deliveries carried out under intergovernmental agreements including those with the Eurasian Economic Union member countries — Belarus, Kazakhstan, Kyrgyzstan and Armenia — the government said.

Despite its massive energy reserves, Russia announced a similar export ban on diesel and petrol last year as pump prices hit Russians’ purchasing power, already affected by weakening of the ruble due to sanctions.

In 2023, Russia produced 43.9 million tonnes of petrol, according to official figures.

Revenues from oil and gas sales remain essential to Moscow as it gears its economy towards efforts to sustain the military offensive in Ukraine.

In recent months, Ukrainian forces have targeted fuel depots with drone attacks, cutting off vital resources for Russia’s forces.