Russia Extends Use of Euro-3 Standard Gasoline and Diesel Until End of 2026 Amid Fuel Crisis
Russian government permits circulation of Euro-3 fuel with higher sulfur content domestically to stabilize energy markets, restricting exports to EAEU countries.
The Russian government has authorized the continued circulation of gasoline and diesel fuels compliant with the outdated Euro-3 environmental standard until the end of 2026. This decision allows fuels with higher sulfur content to remain in use domestically but restricts their export to other Eurasian Economic Union (EAEU) member states.
The Euro-3 standard, which was the European benchmark for fuel quality between 2000 and 2005, permits sulfur levels up to 150 mg/kg in gasoline and 350 mg/kg in diesel. By comparison, the more advanced Euro-5 standard limits sulfur to just 10 mg/kg, reflecting 15 to 35 times stricter requirements.
The government decree, signed by Prime Minister Mikhail Mishustin on July 2, states that certain Russian refineries will be allowed to produce and market these fuels domestically as part of "preventive measures to avoid destabilization of the internal energy market." However, Euro-3 grade fuels will not bear the uniform product circulation mark required for sales within the EAEU nor be permitted for distribution outside Russia.
Context and Impact on the Fuel Market
In late June, reports indicated that the Russian government is also considering authorizing the manufacturing and circulation of even lower environmental classes, including Euro-2 and Euro-4 gasoline and diesel, until July 2027. The sale of Euro-2 fuel has been banned since 2013, indicating a significant regulatory rollback in response to market pressures.
"The shift to lower fuel standards allows utilization of crude oil without deep processing and engages refinery capacities unable to produce cleaner fuels, thereby simplifying production," explained Dmitry Prokofyev, Communications Director at NEFT Research. "However, lower-grade fuels like Euro-2 may pose safety risks for many modern vehicles."
The fuel crisis in Russia stems largely from sustained attacks by Ukraine’s Armed Forces on oil refineries and energy infrastructure. The situation worsened sharply at the end of May when the Moscow-based Kapotnya refinery, which supplies about 40% of the capital’s fuel, was hit twice in a week and is expected to remain offline through late 2026 or early 2027.
According to Reuters, gasoline production in Russia declined by 25% year-over-year in June, falling to 85,000 tonnes per day against summer consumption levels of approximately 110,000 tonnes per day. Market restrictions on fuel sales have been officially implemented in over 40 Russian regions, including occupied Ukrainian territories, with shortages reported in 85 jurisdictions.
Analytical agency Kpler estimates that gasoline reserves have depleted by several hundred thousand tonnes over the past three months. President Vladimir Putin has publicly acknowledged the fuel shortage crisis, underscoring the severity of the supply disruption.
This regulatory easing represents a tactical response by Russian authorities to mitigate fuel supply instability amid the ongoing geopolitical and military challenges, though it raises concerns regarding environmental impact and vehicle safety.
