Ukraine continues to target Russian energy infrastructure, driving up Russia’s demand for imported fuel. According to a report by Reuters on August 7th, traders shipped nearly 30,000 tons of refined oil products, mainly diesel fuel, possibly including aviation fuel, from South Korea to the Russian Far East region at the end of July.
Based on ship tracking data from Kpler and Vortexa, at least two short-range oil tankers loaded fuel from Ulsan Port in South Korea, destined for the Russian Far East. One of the ships has already arrived in Russia, but as of the time of the Reuters report, the cargo had not been unloaded yet. Two sources familiar with the matter stated that the cargo includes diesel fuel, with one person mentioning the inclusion of aviation fuel as well.
This transaction has drawn attention because Russia has historically been a major exporter of diesel and other refined oil products. However, ongoing attacks by Ukraine on Russian refineries and energy infrastructure this year have led to partial shutdowns or reduced production at some refineries, causing fuel supply shortages in certain regions of Russia.
Market sources and data from the London Stock Exchange Group (LSEG) indicate that Russia’s oil product exports by sea in July dropped to around 3.9 million tons, a decrease of about one-third compared to June. This decline reflects the impact of Ukraine’s attacks on Russian refineries, resulting in lower fuel production, and the effects of restrictions on fuel exports.
According to Russian Government Decree No. 954 issued on July 30th, the overall restrictions on fuel exports have been extended until the end of January 2027. Starting from September 1st, export restrictions on certain diesel, marine fuels, and fuel oil will be adjusted, allowing qualifying producers to resume partial exports. However, non-producers and traders will still face stricter limitations.
While the volume of refined oil products imported from South Korea by Russia is relatively small, it is worth noting. Russia, once a significant exporter of refined oil products, now needs to supplement its fuel supply through international markets due to refinery capacity constraints and export restrictions imposed by the government.
Publicly available information currently does not confirm the specific buyers and final usage of this batch of goods. The South Korean Ministry of Industry and Trade Resources declined to comment on this transaction, and the Russian Ministry of Energy did not respond to Reuters’ inquiries.