Russian Refiners Increase Diesel Output Following Deal with United States

Russian refiners are scaling up diesel production in October following a supply agreement between the Kremlin and the United States that led to temporary sanctions relief on Russian fuel. Industry sources reported that the Russian government issued specific export quotas starting October 1, allowing shipments to resume under the arrangement brokered by Washington and Moscow.

U.S. President Donald Trump announced on October 9 that Russian President Vladimir Putin had agreed to supply diesel to the United States and global markets. According to the plan, Russia is slated to deliver over 300,000 metric tons of diesel immediately, followed by 500,000 tons in November and an additional 1 million tons shortly thereafter, with potential for up to 3 million more tons depending on refinery conditions.

Following the implementation of a diesel export ban in August, Russian oil companies were forced to scale back production to meet domestic demands and honor agreements with Central Asian nations. Industry data indicated that domestic diesel output dipped to about 160,000 tons per day during the first half of October, down from 175,000 tons per day in September.

However, production began climbing toward 180,000 tons per day in mid-October after new export quotas were introduced. With domestic consumption seasonally dropping to around 140,000 tons per day due to the conclusion of the grain harvest and the end of the summer driving season, Russia expects to have at least 40,000 tons per day available for export.

Tracking systems noted that a Malta-flagged tanker carrying 40,000 tons of Russian diesel headed toward New York on October 23. Kremlin spokesman Dmitry Peskov confirmed that shipments to the United States will proceed on a regular schedule following the departure of the initial vessel, while exports have also resumed to destinations including Turkey and Brazil.

In a separate development, German wholesaler Metro distanced itself from its Russian subsidiary after the unit made a multimillion-euro donation to a Russian fund supporting the war in Ukraine. Metro AG stated that the donation was neither coordinated nor authorized by the German parent company, noting that it no longer exercises operational control over the Russian unit.

Under a decree issued by Russian President Vladimir Putin in late September, Metro's assets in Russia were placed under forced administration managed by a local company. The Russian Metro website announced a transfer of 1 billion rubles, equivalent to about $12.4 million, to the state-backed organization 'People's Front. Everything for Victory' to purchase frontline military equipment.

Meanwhile, economic pressure on Moscow persists, with Russia drawing down its gold reserves by 62 tonnes since December to support its wartime economy amid Western sanctions and a widening budget deficit.