Russian oil product exports hit decade low in July amid Ukraine strikes

In July, Russia's seaborne exports of refined petroleum products hit a ten year low, while crude exports remained high, according to cargo-tracking data. The decline in product exports was largely due to Ukraine's strikes on Russian refining infrastructure, which knocked out over a third of the country's refining capacity, causing crude runs to fall below 4 million barrels per day, the lowest in over two decades.

The Russian government implemented an export ban on diesel from July 8-31, which was extended until January 2027, to address domestic fuel shortages. However, Russia began importing refined products, including seaborne procurement of gasoline from India, to compensate for its domestic shortfall. Gasoil/diesel loadings for international shipments fell by 157,000 barrels per day in July from June.

Meanwhile, Russia's crude exports remained high despite falling from June's peak, with seaborne exports of Russian crude at 4.321 million barrels per day in July, down 7% from June but up 26% year-over-year. The country exported significant amounts of crude to India, China, and Singapore, with shipments from Ust-Luga to foreign ports experiencing increased ship-to-ship transfers due to Western sanctions.