Russian Fuel Oil: Standards, Grades and Export

Fuel oil occupies an important place in the structure of Russian refining and the fuel and energy complex. It is used as boiler fuel for thermal power plants, industrial enterprises and municipal boilers, as marine fuel and as feedstock for further refining. Russia remains one of the world's largest producers and exporters of fuel oil, and its output and export volumes directly affect refinery utilisation and budget revenues. For the B2B segment, fuel oil matters both as an energy carrier for large consumers and as an export commodity whose quality is strictly regulated by standards and whose logistics are determined by port infrastructure and the sanctions environment.

Quality Standards: GOST 10585-2013

Requirements for fuel oil are established by GOST 10585-2013 "Petroleum fuel. Fuel oil. Specifications". The standard applies to fuel oil used for transport and stationary boiler and technological installations and regulates key physico-chemical parameters.

Depending on purpose and properties, several grades are distinguished. Marine F5 is intended for ship power plants and is obtained from straight-run petroleum products with the addition of up to 22% kerosene-gasoil fractions from catalytic or thermal cracking. Boiler 40 (M40) and boiler 100 (M100) are the main grades for stationary boilers and industrial furnaces. M100 is produced from atmospheric and vacuum distillation residues with the addition of heavy gasoil fractions and differs from M40 in higher viscosity and the presence of additives - diesel fuel, depressant additives, kerosene fractions.

Key controlled parameters include kinematic viscosity (for M40 at 50 °C - not more than 36.20 mm²/s, for M100 at 80 °C - not more than 59.00 mm²/s, at 100 °C - not more than 50.00 mm²/s), ash content (for low-ash M40 - 0.04%, M100 - 0.05%; for ash-bearing - 0.12% and 0.14% respectively), mass fraction of mechanical impurities (0.5% for M40 and 1.0% for M100), mass fraction of water (not more than 1.0%), content of water-soluble acids and alkalis (absence), mass fraction of sulphur (differentiated by ranges - from 0.50% to 3.50% depending on type), coking (not more than 6.00%), hydrogen sulphide content (not more than 10 ppm), flash point (in an open cup - not lower than 90 °C for F5 and 110 °C for boiler grades) and pour point (not higher than 10 °C for M40 and 25 °C for M100).

For export supplies, fuel oil quality must comply with the importing country's requirements, which may be based on ISO or ASTM standards. In particular, for supplies to China and Southeast Asia, sulphur and viscosity parameters are important, since high-sulphur fuel oil is used as refinery feedstock and bunker fuel.

Production and Output Volumes

According to Alto Consulting Group, by the end of 2025 Russia produced 38,827.3 thousand tonnes of boiler fuel oil, 3.0% less than the previous year. The decline is moderate and reflects the redistribution of output towards more marginal petroleum products, as well as a gradual reduction in fuel oil use in the power sector. Despite the transformation of the energy balance, fuel oil retains its importance due to the scale of production, developed logistics and stable sales channels within the country.

The regional structure of production remains stable. The undisputed leader is the Volga Federal District, which accounts for about 25.1% of total Russian fuel oil output. This is due to the high concentration of refineries, developed transport infrastructure and proximity to large industrial consumers. Central regions act as significant consumers and redistribution hubs, the Ural Federal District is oriented towards industrial demand, and Siberian regions provide local use and export logistics.

The largest fuel oil producers are vertically integrated oil companies owning refineries: Rosneft, Lukoil, Gazprom Neft, Surgutneftegas and Tatneft. Industry concentration is high, and a significant part of export flows is formed by a limited circle of players, which is important to consider when building contractual relations.

Price dynamics on the domestic market are highly volatile. In 2023-2025, average producer prices for boiler fuel oil rose by 35.3% - from RUB 17,658.1 per tonne to RUB 23,882.9 per tonne. The increase was driven by changes in the refining structure, growing export alternatives and higher production costs. The minimum producer price was recorded in the Volga Federal District - RUB 21,748.2 per tonne.

Exports: Geography and Dynamics

Exports remain a key sales channel for Russian fuel oil. In the first ten months of 2025, Russian fuel oil supplies grew by 25%. The largest buyer was Singapore - 17% of total exports. This is followed by Saudi Arabia (15%), China (15%), India (12%), Turkey (11%) and Malaysia (6%). These countries use Russian fuel oil as marine fuel, for power generation and as petrochemical feedstock.

Export geography has undergone significant transformation under sanctions. Whereas previously a significant part of supplies went to Europe, now the main flows are directed to Asia and the Middle East. At certain periods there were sharp fluctuations in volumes by destination: for example, supplies to India and Turkey in June 2025 fell by 49% and 33% respectively after previous significant volumes. Saudi Arabia became the main buyer of Russian fuel oil in mid-2025, increasing volumes by 9%.

In early 2026, Russian fuel oil exports to Asia slowed. According to Kpler, in January 2026 exports amounted to about 1.2 million tonnes (about 246 thousand barrels per day), half the level of January 2025 (2.5 million tonnes). This is the third consecutive month of decline. The slowdown is due to stricter enforcement of Western sanctions and Ukrainian drone attacks on Russian refineries, which reduced production. Buyers are unwilling to take risks given strict sanctions monitoring and penalties, especially after US sanctions against Rosneft and Lukoil in October 2025.

Export prices for fuel oil are shaped by global quotations for high-sulphur fuel and the demand balance in Asia. The average import price of Russian M100 fuel oil in 2025 was about USD 405 per tonne (CIF), 12.7% below the 2024 level and about USD 18 per tonne below the average price of 380 CST high-sulphur fuel oil in Singapore for the same period. Spot offers on an FOB basis ranged from USD 380-420 per tonne depending on quality and loading port.

Logistics and Infrastructure

Russian fuel oil logistics relies on several key elements. Seaborne exports are carried out through the ports of the Baltic (Primorsk, Ust-Luga), the Black Sea (Novorossiysk, Tuapse, Taman) and the Far East. As of November 2025, average daily fuel oil exports through Baltic ports amounted to about 49 thousand tonnes (16% more than in October), while exports from the Azov-Black Sea region fell by 15% to 30 thousand tonnes per day due to technical failures at facilities in the first half of the month.

Tankers are used for transportation, including vessels of the so-called "shadow fleet". Amid sanctions pressure, traders are recording growth in supplies through ship-to-ship transfers in the areas of Limassol, the Laconian Gulf, Port Said and El-Hoseima. In particular, the volume of naphtha and fuel oil transshipment in El-Hoseima and Port Said exceeded 200 thousand tonnes per month. Some cargoes are stored at anchorage in Port Said while looking for buyers, and about 360 thousand tonnes loaded in November-December 2025 are following longer routes around Africa to Asia, of which about 300 thousand tonnes have no final destination.

A key role in transshipment is played by the Indonesian port of Karimun. In 2025, 590 thousand tonnes of fuel oil were exported through it (in January-March 2024 - about 100 thousand tonnes). The terminal is located in a free trade zone and outside Indonesia's jurisdiction, which allows Russian petroleum products to be blended with products of other origins - after which the energy carriers are considered Indonesian and Western sanctions do not apply to them, after which they are re-exported to Singapore, Malaysia and China. In December 2025 and January 2026, Karimun resumed imports after a six-month pause, receiving more than 300 thousand tonnes of Russian fuel oil.

Freight rates for fuel oil transportation are rising. In November 2025, freight from Baltic ports rose by 3-4% in a week to USD 60-100 per tonne, and from Black Sea ports by 1-2% to USD 30-80 per tonne. High global demand for oil and fuel oil transportation led some tankers to switch to these cargoes, creating a shortage of vessels for light petroleum products and increasing their delivery costs.

Sanctions Pressure and Adaptation

Western sanctions remain a key external factor for Russian fuel oil exports. The EU embargo on seaborne imports of Russian petroleum products introduced in 2023 and the G7 price cap forced Russia to restructure export flows and create alternative mechanisms for settlements, insurance and transshipment. A new wave of US sanctions against Rosneft and Lukoil in October 2025 added uncertainty: traders are forced to manoeuvre payment routes and voyage schedules. Counterparties of these companies were given a 30-day period to complete transactions, otherwise they would fall under US secondary sanctions.

Fuel oil and crude oil have proven more vulnerable to sanctions than diesel, as long voyages to Asia create risks of delays for sanctioned cargoes. According to Bloomberg estimates, total Russian petroleum product exports in October 2025 fell to the lowest level since 2022 - 1.89 million barrels per day, with weak performance driven specifically by fuel oil and crude oil, especially from Baltic ports after strikes on the Ust-Luga hub.

Adaptation is occurring through several channels. First, the use of ship-to-ship transfers and terminals in neutral jurisdictions (Karimun, Port Said, El-Hoseima) is growing, where blending and change of cargo origin take place. Second, the share of the "shadow fleet" is increasing - old tankers operating outside Western services and insurance. Third, traders use multiple levels of transshipment and little-known trading firms that often change names before arriving at final destinations. However, these schemes increase risks and costs, and sanctions pressure on logistics continues to intensify.

Prospects and Selection Factors

The Russian fuel oil industry remains resilient but faces systemic challenges: sanctions pressure, logistics constraints, reduced production due to attacks on refineries and fluctuations in domestic demand. The 3% decline in output in 2025 reflects structural shifts in refining rather than a loss of fuel oil's importance for certain segments - boilers, industrial enterprises and backup power supply.

Export reorientation to Singapore, Saudi Arabia, China, India and Turkey is likely to continue, although it will depend on political risks, competition from other suppliers and the ability to build sustainable logistics chains under sanctions. Asia is expected to remain the main destination for Russian fuel oil in 2026 if sanctions are not lifted, with Southeast Asia and China remaining key sales markets.

For buyers, not only price per tonne matters but also quality stability (grade, viscosity, ash, sulphur, pour point), delivery terms (FOB, CIF, DES), supply chain reputation, availability of tankers and insurance, and compliance with sanctions requirements. Understanding standards, differences between grades and the structure of logistics flows helps reduce risks and build long-term contracts with Russian producers and traders.

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If you are looking for Russian fuel oil, need advice on grade selection, quality parameters and supply organisation, please contact our team at info@apptrade.ru. We will help you find the right product, verify documentation and organise supply.