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Rosneft Seeks Mandatory Refining Quotas to Stem Fuel Shortages

Igor Sechin, head of state-controlled oil giant Rosneft, has urged President Vladimir Putin to mandate that domestic energy firms refine at least 30% of their crude within Russia. The proposal aims to stabilize a fuel market fractured by persistent drone strikes on infrastructure and dwindling supply chains across the country.

Rosneft Seeks Mandatory Refining Quotas to Stem Fuel Shortages

The recommendation, detailed in a late May letter, also calls for the immediate removal of third-party resellers to streamline distribution. President Putin has directed Deputy Prime Minister Alexander Novak to evaluate the feasibility of these measures, which come as Russia grapples with acute shortages that have forced authorities in occupied Crimea to restrict fuel access to government agencies alone.

Domestic production has struggled to keep pace with demand since May, as consistent strikes on refineries and supply routes disrupt output. In response to the volatility, the federal government has already lowered environmental standards for gasoline and diesel while extending a ban on jet fuel exports through late 2026. Officials are now weighing a total prohibition on diesel exports to prioritize home consumption, a shift reflecting the deepening impact of energy infrastructure damage on Russia’s broader economic stability.

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