The top Russian diesel hub is set for its largest monthly plunge in exports since 2016

• Russia’s largest diesel exporter is set for a 30% decline in shipments of the fuel, month over month, Bloomberg reports.
• The Baltic Sea port is slated to ship 269,000 barrels a day in May, its lowest volume of any May in three years. 
• The war in Ukraine has led many European nations to self-sanction from doing business with Russia. 

Diesel exports from Russia’s Primorsk will notch their biggest monthly decline since 2016 as the Ukraine war continues to send energy markets reeling. 

A report from Bloomberg showed that shipments out of the Baltic sea port are set at 1.1 million tons for May, or about 269,000 barrels a day. That marks a 30% decline month over month, and the lowest volume of any May in three years.

Primorsk is an integral part of the diesel supply-chain network, and Russia’s largest exporter for the fuel. Data compiled by Bloomberg highlighted that 96% of the port’s exports were distributed in Europe in 2021. 

However, the war has led to many European nations to self-sanction from doing business with Russia, which leaves a gap in the market for the supply. 

Since the Ukraine war began, Russian cargoes have had to travel much further distances to reach buyers, with more ships being sent to Asia and the Mediterranean amid sanctions. 

Yet despite widespread condemnation against Russia, European Union countries continue to rely on Russian energy supplies. 

The Financial Times reported Thursday that Germany, Austria, Hungary, and Slovakia are set to pay for Russian gas in rubles, bucking sanction warnings from the European Union.