Russia has lifted most of the diesel export restrictions imposed last month to safeguard domestic supplies and prices.

The ban imposed by the largest seaborne exporter of diesel and gasoil added to months of turmoil in tanker trading as vessels shifted to new markets and buyers looked to Asia and the Middle East for alternative supplies.

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“The government lifted restrictions on exports of diesel fuel delivered to seaports by pipeline, provided that the manufacturer supplies at least 50% of the produced diesel fuel to the domestic market,” the government said in a statement cited by Reuters.

The government had described the ban as temporary, and analysts had predicted exports to resume swiftly due to a lack of storage capacity.

Domestic media reported planned meetings this week between ministers and oil companies, pushing for a resumption of exports. Restrictions for gasoline exports remain.

Russia exported just more than 1m barrels per day of diesel and gasoil in the first eight months of 2023 using tankers, according to Vortexa data.

Turkey has been the largest importer of diesel since the European Union imposed an export ban on Russian products last February.

The main tanker players involved in the Russian diesel trades were Russian, Turkish and some Greek owners, said Poten & Partners.

Analysts had suggested that the ban would hit MR tankers in the Atlantic the hardest as tanker supply increased.

But time charter equivalent rates had increased from $19,282 on the day of the ban on 21 September to reach $30,089 on Thursday after several weeks of volatile rates, according to the Baltic Exchange MR Atlantic basket.

Erik Lewenhaupt, CEO of Concordia Maritime, said the ban on Russian diesel exports was the “biggest news of the month” in his company’s update on the product tanker markets on Thursday. China and India had increased their exports recently, he said.

A continuation of the ban would have increased “already firm demand for shipments of petroleum products from Middle East and Asia to Europe over the winter peak demand”, he said.

Vortexa said China had been best positioned to provide additional diesel barrels towards the West — with a corresponding increase in tanker tonne-miles — as refinery maintenance continued in India.

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