Ukraine Hits Refinery as Moscow Prepares to Extend Diesel Export Ban

Ukraine launched a drone attack on an oil refinery near Moscow overnight, causing damage to a processing plant jointly owned by Rosneft and Gazprom Neft, as Russia prepares to extend its ban on diesel exports through the end of October. This action occurred despite reports that Ukraine and Russia have not reached any partial truce agreements to refrain from striking energy infrastructure.

The 300,000-barrels-per-day refinery in Yaroslavl, located less than 200 miles northeast of Moscow, was targeted in a coordinated effort by Ukraine's Security Service, Unmanned Systems Forces, Defense Intelligence, and Foreign Intelligence Service. Ukrainian President Volodymyr Zelenskyy shared a video of the burning refinery on Thursday.

Governor Mikhail Yevrayev of Yaroslavl region confirmed the damage through a Telegram post, stating that the refinery had sustained harm in an overnight drone assault. The fire was reportedly extinguished by Thursday morning, according to Yevrayev. This escalation in attacks on energy sites underscores the absence of a truce not to target such facilities.

Ukraine's latest attack on the Yaroslavl refinery coincides with Russia's decision to prolong its diesel export ban until October 31, reported by Russian daily Vedomosti. The government's extension of the ban, initially set to expire September 30, was prompted by maintenance delays and the necessity to replenish fuel reserves ahead of winter.

The ban, which was broadened in July to encompass all fuel producers, has exacerbated the global middle distillate market turmoil, exacerbating an existing gasoline and diesel shortage in Russia since the spring. This shortage arose following Ukraine's intensified drone strikes on Russian refineries, aimed at disrupting fuel supplies to the front lines and domestic Russian market.