Russia Extends Diesel Export Ban as Ukraine’s Refinery Strikes Cut Fuel Production
Moscow is keeping its diesel export ban in place past the end of September as Ukrainian drone strikes continue to hammer Russian refineries, while the Kremlin warns that new U.S. sanctions will slow down peace efforts.
Russia plans to extend its ban on most diesel exports beyond the end of September, according to people familiar with the matter [1]. The ban was originally set to expire this month, but it will now continue as Ukraine keeps attacking Russian refineries [1]. The strikes have reduced Russia's ability to produce fuel, and extending the ban is meant to protect domestic supply [1].
The diesel export ban comes as the Kremlin said new U.S. sanctions would hinder peace efforts in Ukraine [2]. Washington announced the measures earlier, targeting Russian entities, and Moscow warned the move could slow down diplomatic progress [2]. The United States Congress has approved the new sanctions targeting Russia, and Moscow claims the move will "complicate" peace efforts [3].
The U.S. Treasury has also imposed new sanctions on Russia's VTB Bank [4]. The move aims to pressure foreign banks to cut ties with the institution [4]. Sanctions are penalties that restrict financial dealings, and by targeting VTB, the Treasury seeks to isolate the bank from the global financial system [4].
The developments mark the latest escalation in economic pressure between Washington and Moscow as the war in Ukraine continues.