Western traders move into Libya as Russian fuel shipments fade

Libya has opened its fuel import market to major Western oil traders, dealing a fresh blow to Russia’s shrinking fuel exports to the North African country, according to three trading sources.

Global firms including Vitol, Trafigura and TotalEnergies have won recent tenders to supply Libya with gasoline and diesel, marking a shift away from Russian product supplies.

The awards, made in recent weeks, come as Libya overhauls its oil sector, 15 years after the fall of Muammar Gaddafi, and seeks to stabilise energy flows after years of conflict.

Libya, which produces about 1.4 million barrels of crude per day but lacks enough refining capacity, is turning to open tenders instead of swapping crude for imported fuel.

Under the new system, Vitol secured the right to deliver up to 10 gasoline cargoes a month along with diesel, while Trafigura and TotalEnergies were also awarded supply volumes, traders said.

As a result, Russian fuel shipments to Libya have plunged to about 5,000 barrels per day in 2026 from around 56,000 barrels per day in 2024–25, data from Kpler showed.

Italy has emerged as Libya’s main fuel supplier this year, with volumes largely coming from the ISAB and Sarroch refineries operated by Trafigura and Vitol.

The move reflects Moscow’s wider struggle to place refined fuels after Western sanctions over the war in Ukraine forced Russia to rely more on Africa, Asia and South America.

Libya is also reshaping its crude export system, reducing the role of Swiss trader BGN while allocating more export cargoes to big Western firms and to Transmed Trading.

The strategy is reinforced by a 25-year, more than $20-billion investment deal signed in January between Libya and TotalEnergies and ConocoPhillips, aimed at boosting production and rebuilding the country’s energy sector.