In a strategic move to stabilize domestic gasoline prices and meet the increased consumer and agricultural demand, Russia declared a six-month suspension of gasoline exports starting March 1, 2024. This decision, as reported by Reuters on February 27, 2024, aims to address the seasonal surge in fuel requirements, particularly during spring agricultural activities, refinery maintenance periods, and the summer holiday season.

Alexander Novak, Russia’s Deputy Prime Minister, confirmed the prohibition, which was officially sanctioned by Prime Minister Mikhail Mishustin. This regulatory action was propelled by Novak’s insights on impending fuel demand challenges outlined in a proposal dated February 21, 2024. The ban is anticipated to mitigate domestic gasoline price volatility, a matter of significant concern for Russian motorists and the agricultural sector, especially leading up to the presidential election set for March 15–17, 2024.

The context of this embargo is intricately tied to Russia’s broader economic landscape and geopolitical climate. As the world’s second-largest oil exporter, Russia’s economy is heavily reliant on the gas, oil, and oil products sectors for foreign exchange earnings. Concurrently, the ongoing conflict with Ukraine has disrupted energy supply chains, amplifying the need for domestic energy security measures.

Russia’s leading gasoline producers, including Gazprom Neft’s Omsk refinery, Lukoil’s NORSI oil refinery in Nizhny Novgorod, and Rosneft’s Ryazan refinery, play pivotal roles in the national energy supply chain. In 2023, Russia produced 43.9 million tons of gasoline, of which approximately 5.76 million tons were exported, accounting for about 13% of its total gasoline production. The ban notably exempts member states of the Eurasian Economic Union, Mongolia, Uzbekistan, and two Russian-backed breakaway regions of Georgia, South Ossetia, and Abkhazia, underscoring a strategic approach to maintaining specific geopolitical alliances and economic interests.

This regulatory measure follows a similar precedent in 2023, where Russia imposed a temporary export ban between September and November to counteract domestic price spikes and shortages. As Russia navigates its complex economic and geopolitical landscape, this gasoline export ban reflects a calculated effort to balance domestic market stability with its role in the global energy economy.