Russia’s Big Decision Amid Energy Crisis: Aviation Fuel Exports Banned Until 30 November

Russia temporarily bans aviation fuel exports until 30 November to stabilise its domestic market after Ukraine targets its energy infrastructure.

Aviation fuel: Amid the ongoing war with Ukraine, Russia has taken a major step to protect its domestic market. The Kremlin has temporarily banned the export of aviation fuel from the country. According to the order issued by the government, this restriction will remain in place until 30 November. Behind this decision, the government’s straightforward logic, is that no shortage in the domestic fuel supply will be allowed for now, and the domestic market will be stabilised at all costs.

Production at Record Lows

This decision is not a sudden move; rather, Russia’s compulsion behind it is clearly visible. Over the past few weeks, Ukraine (Kyiv) has heavily targeted Russia’s energy infrastructure. Due to continuous drone and missile attacks, several of Russia’s major oil refineries and pipelines have suffered heavy damage. As a result, the pace of oil refining in Russia has dropped to its lowest level in several years. In such a situation, Moscow was left with no option other than to protect its stocks.

Winter Season Ahead, Pressure Increases

Another cause of concern for Russia is that the season in which the local demand for fuel rises significantly is about to begin. Oil consumption accelerates during winter preparations and the farming season. Although Russia is among the select few countries in the world that sell the highest amount of diesel and jet fuel to other nations, the current circumstances have made it more important for the Putin government to meet its own country's needs rather than focusing on the international market.

No Impact on Existing Agreements

The Kremlin has made it clear that this ban will have no impact on the supplies to countries with which Russia has prior government-to-government agreements. This means friendly nations will continue to receive oil. However, experts believe that this move by Russia could increase aviation fuel prices in the global market. Prior to this, Russia has imposed similar restrictions on petrol and diesel exports. Maintaining both its credibility and its market amidst continuous attacks is currently Moscow’s biggest challenge.