Russia to partially ban diesel exports, extend gasoline restrictions after Ukrainian drone attacks

Russia will introduce a partial ban on diesel exports until the end of the year and extend an existing ban on gasoline exports, Deputy Prime Minister Alexander Novak was quoted as saying on Thursday, following a spate of Ukrainian drone attacks on Russian refineries, as per Hydrocarbonprocessing.

The attacks have reduced Russian oil refining by almost a fifth on certain days and cut exports from key ports. The fall in capacity to refine oil has pushed Moscow close to reducing crude output. Several Russian regions are facing shortages of certain grades of fuel.

Novak was quoted as saying there was a small deficit of oil products, but stockpiles were being used to cover the shortfall.

The diesel ban applies to re-sellers but not to producers. Industry sources said the volumes of diesel exported by traders from Russia are relatively small.

Around three-quarters of diesel exports are shipped by producers via the North and South pipelines which lead, respectively, to Baltic and Black Sea ports.

According to industry sources, Russia produced almost 86 MM tonnes of diesel in 2024, exporting some 31 MM tonnes. Russia and the United States are the world's top seaborne exporters of diesel.

The gasoline ban covers producers as well as re-sellers, but does not affect inter-governmental agreements between Russia and a number of other countries, such as Mongolia.

"We will soon extend the ban on gasoline exports until the end of the year, and a ban on diesel fuel exports for non-producers will also be introduced until the end of the year," Novak said, according to Interfax. "This will allow us to further supply the market with petroleum products," he said.

Low-sulfur gasoil futures' premium to Brent crude rose over 5% to $26.14 after the news, close to its highest since late July.

Fuel shortages widen. Fuel shortages have been widening across Russia.

Izvestia newspaper reported this week that Russia's No.2 oil producer Lukoil had banned the sale of gasoline in jerry cans at certain filling stations in Moscow.

Lukoil did not reply to a request for comment. Sergei Aksyonov, the head of Russia-controlled Crimea, said on Thursday that disruptions in fuel supplies were related to the closure of some oil refineries.

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Eni announced that it has received approval from the Italian Ministry of the Environment and Energy Security to convert selected units at the Sannazzaro de’ Burgondi (Pavia) refinery into a biorefinery, as per Hydrocarbonprocessing.

Eni has now started the authorization process and has filed an application for Environmental Impact Assessment (VIA).

The project involves converting the existing Hydrocracker (HDC2) unit using Ecofining™ technology and constructing a pre-treatment unit for waste and residues, which are the main biogenic feedstocks Enilive uses to produce HVO biofuels.

Hydrogen will be sourced from existing plants, while supporting infrastructure, including logistics, will be adapted for the new operations. Traditional fuel production will continue alongside the new production of HVO diesel and SAF-biojet for aviation, expected to begin in 2028.

The new biorefinery will not impact the capacity of the existing refinery; instead, it will operate alongside the existing facilities, enhancing the diversification of products.

Once operational, the biorefinery will have a processing capacity of 550,000 tonnes/year of feedstock, with flexibility to produce SAF-biojet and HVO diesel. The plants will process various biogenic feedstocks, mainly waste and residues. Through Enilive, Eni is already the second-largest producer of HVO (Hydrogenated Vegetable Oil) biofuels in Europe, including both diesel and biojet (SAF – Sustainable Aviation Fuel).

The new Sannazzaro biorefinery will strengthen the site’s strategic role in supplying traditional jet fuel and SAF to north-west Italian airports, via both the pipeline connection to Milan Malpensa airport and depots connected to the refinery near other airports.

The conversion of parts of the Sannazzaro de’ Burgondi refinery into a biorefinery underlines Eni’s commitment - through Enilive - to increase biorefining capacity from the current 1.65 million tonnes per year to over 3 million in 2028 and over 5 million in 2030, with the potential to produce up to 2 million tonnes of SAF annually by 2030. Today, biofuels are produced at Enilive’s biorefineries in Venice and Gela and at the St. Bernard Renewables LLC biorefinery (a 50% joint venture) in Louisiana (USA). A third Italian biorefinery is due to come on stream in Livorno in 2026, followed by two plants currently under construction in Malaysia and South Korea; a further biorefinery in Italy has been announced for Priolo, Sicily.

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Henkel announced the opening of its new Inspiration Center for Adhesive Technologies in Shanghai. With an investment of more than 60 million euros, the facility is designed to accelerate the development of impactful and sustainable solutions, foster deeper customer collaboration, and drive Henkel’s long-term growth in the Asia-Pacific region, as per company.

Located in Zhangjiang Hi-Tech Park, the 33,000-square-meter site brings together more than 500 scientists and technical experts from the fields of product development, application technology and technical services. It supports customers across a broad range of industries with leading solutions in adhesives, sealants, and functional coatings.

“The new Inspiration Center Shanghai reinforces our commitment to advancing innovation in the Asia-Pacific region by capturing the trends and needs of the region,” said Mark Dorn, Executive Vice President Adhesive Technologies at Henkel. “The concept leverages our advanced global innovation center approach that we introduced at our headquarters in Dusseldorf in 2022 and which is designed to transform technological know-how into impactful, sustainable innovations. The Inspiration Center Shanghai brings our portfolio to life for our customers and enables close collaboration internally and externally to increase the speed of innovation. This lays the foundation for Henkel?s future growth in the region.”

Built on a technology platform-based setup, the new site enables cross-industry collaboration and knowledge exchange. Advanced digital tools connect Henkel experts to the company’s broader global innovation ecosystem, supporting agile workflows and data-driven decision-making. The facility also houses a modern customer experience center that offers immersive interactions, welcoming partners from industry and academia to explore new ideas and discover opportunities for growth.

“The new center creates an inspiring working environment that fosters a culture of innovation,” said Nigel Fay, Corporate Vice President Innovation and Chief Technology Officer at Henkel Adhesive Technologies. “Through collaboration and co-creation, here we turn local insights into scalable solutions, deliver meaningful impact to our customers, and contribute to our global research network.”

As one of the most dynamic and diverse regions globally, Asia-Pacific plays a vital role in driving innovation and growth for Henkel. China, as a key market in the region, is at the forefront of emerging trends, fast-evolving customer needs, and sustainable development. The new facility enables Henkel to deepen its understanding of industrial shifts, address unique market demands, and deliver greater value to customers across the region.

“Asia-Pacific is a region of tremendous potential, and China stands out as a key engine of innovation and growth,” said Carmen Chua, President of Henkel Asia-Pacific. “With the new center, we are staying closer to our customers and responding to their needs more quickly and effectively. This also marks an important milestone in Henkel’s continued investment in China, strengthening local innovation and achieving shared success with our partners.”

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Shell Polymers is supplying ISCC Plus-certified, virgin-equivalent circular polyethylene (PE) produced at its Monaca, Pennsylvania, site to Isoflex Packaging Inc. for use in food-grade flexible packaging, as per Chemweek.

Shell Polymers, part of Shell PLC, announced the news on Sept. 26.

“This collaboration underscores Shell Polymers’ ability to meet the real-world demands of converters seeking circular solutions, including certified circular resin,” said Ryan Siegfried, global marketing manager at Shell Polymers. “Our ISCC Plus-certified materials help customers like Isoflex deliver traceable and functional solutions that make it possible for more end markets to access recycled plastic.”

Shell Polymers’ Monaca facility is ISCC Plus-certified for the production of circular PE from circular ethylene. Shell’s Norco, Louisiana, steam cracker is ISCC Plus-certified for the production of circular ethylene from pyrolysis oil. Freepoint Eco-Systems supplies pyrolysis oil from its advanced recycling facility at Hebron, Ohio, to Shell under a long-term supply agreement.

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The European Commission has launched an expiry review of the antidumping measures in place on imports of certain polyvinyl alcohols (PVOH) originating from China, it announced on Sept. 25, as per Chemweek.

Antidumping duties were implemented on Sept. 25, 2020, after a complaint by Kuraray Europe GmbH, a subsidiary of Kuraray Ltd., that material being dumped was causing harm to the European market, triggered an investigation in 2019.

The review will determine whether the removal of duties up to 72.9% will cause dumping and subsequent harm to the industry.

A final decision to maintain or terminate the measures is expected by Sept. 24, 2026.

PVOH is produced using vinyl acetate monomer (VAM) through a process called hydrolysis, whereby VAM undergoes polymerization to form polyvinyl acetate, which is then reacted with an alcohol such as methanol or ethanol in the presence of a catalyst.

The original complaint indicated distortions for a number of raw materials that can be used to produce VAM, such as petroleum, natural gas or coal, which were having impacts on China.

However, it was found that VAM prices in China were higher than those in Europe and Russia.

Platts, part of S&P Global Commodity Insights, last assessed the three- to 30-day forward VAM spot price at €850 per metric ton free-delivered northwest Europe, stable week over week.

Imports of VAM into Europe from China have stagnated in the second half of 2025, following the EU’s duty-free quota being fully used up on July 23.

EU importers are, however, still sourcing material from South Korea at competitive prices.

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