Russian Diesel Export Ban Causes Mayhem in the Mediterranean
A near total shutdown in Russian fuel exports following a campaign of Ukrainian drone attacks on oil refineries is causing a massive supply squeeze in the Mediterranean diesel market, where buyers now find themselves having to compete for alternative supplies from the U.S. and India.
Global diesel markets have been under severe strain for most of 2026 due to the loss of oil shipments from the Middle East resulting from the closure of the Strait of Hormuz in March. Now, Russia’s diesel export ban is making things even worse, especially for a group of countries that have benefited from discounted Russian fuel in recent years.
Vortexa shiptracking data show that Turkey, Morocco and other countries in the Mediterranean region were until recently buying more than 500,000 barrels/day of diesel from Russia – the world’s second largest exporter – taking advantage of the fact that Russian oil and refined products are banned in the EU due to the invasion of Ukraine.
However, Ukrainian attacks on oil refineries have now forced Russia to introduce a full diesel export ban to ensure supplies for domestic consumers amid the harvest season. The ban entered into force on July 8 and is currently in place until Sept. 1.
In the Mediterranean, the loss of supplies from Russia boosted diesel CIF cargo prices to an average of $1,268/metric ton since the Kremlin announced the export ban, according to OPIS pricing data. Moreover, the region has opened an unusually wide premium of over $14/mt relative to equivalent prices in Northwest Europe, compared to $3/mt earlier in the year.
In the Romanian port of Constanta in the Black Sea, diesel barges are being traded at premiums of almost $100/mt over the typical CIF Mediterranean price, up from around $40/mt in early July, according to sources. The spike reflects the fact that Turkey and other Mediterranean nations now
must attract diesel supplies at market price to meet domestic demand.
“It is hectic in the Med,” a trader commented.
Mick Strautmann from Vortexa confirmed that there is a surge in diesel cargoes from the U.S Gulf Coast (USGC) and India going to the Mediterranean, particularly into Turkey.
“The U.S. has, as of mid-August, delivered its highest volume of diesel into the Med in nine years,” Strautmann told OPIS, adding that imports from India are at the highest level in at least ten years.
Market sources commented that this is coming at a big cost for Turkish companies, as the need to buy higher-priced cargoes from the USGC and India to avoid shortages leaves fuel distributors in a dire financial position.
Moreover, this reshuffle in flows has altered the net diesel trade balance between Turkey and the EU, turning Ankara into a net importer after years of buying from Russia and exporting to EU countries.
Vortexa data shows that Turkey’s net exports into EU ports fell from 87,000 b/d in 2025 to 32,000 b/d in the the first half of 2026, as Brussels banned refined products made from Russian crude in January. Then, trade flows flipped in July and August as Turkish companies found themselves deprived of Russian diesel. Over the past two months, Turkey imported 234,000 mt of diesel from Vitol’s Sarroch refinery in Italy and 86,000 mt from Hellenic Petroleum’s Aspropyrgos refinery in Greece – as well as smaller volumes from Elefsis (Greece), Santa Panagia (Italy) and Huelva (Spain).
And Turkish consumers are feeling the pain from this switch to expensive suppliers, with diesel prices at the pump rising above 80 Turkish lira ($1.66)/liter in August from 54 lira/liter at the start of the year, according to data from fuel distributor Petrol Ofisi. This has prompted the government to temporarily remove a special consumption tax on diesel. In any case, high prices have already started to curb consumption, with Turkish diesel demand down 6% in the second quarter.
“I think that there are 30,000-40,000 b/d of diesel consumption that responds quickly to price fluctuations. This could be achieved through reducing speed, driving more economically, or using less fuel,” Turkish energy analyst Baris Sanli wrote in a recent market report.
On the other hand, domestic diesel producers are enjoying quite a bonanza in earnings. Tupras, the largest oil refiner in Turkey, said that its profits more than quadrupled in the first half of the year, as its net refining margin jumped to $21.4/bbl in the second quarter – up from $5.3/bbl in the same period of 2025.
Meanwhile, market participants are now awaiting to see whether the Russian government extends or lifts the diesel export ban on Sept. 1. Deputy prime minister Alexander Novak told reporters last weekend that the decision has yet to be made, according to local news agency Interfax.
Reporting by Frederick Shaw, fshaw@opisnet.com, Jaime Llinares Taboada, jllinares@opisnet.com; Editing by Rob Sheridan, rsheridan@opisnet.com