Foreign trade
Russia eases diesel export ban
Russia is one of the largest exporters of gasoline and diesel. photo
© —/AP/dpa
The Russian fuel market has been experiencing turbulence for some time. Recently there have been shortages of diesel. Now the government is relaxing countermeasures.
Two weeks after a ban on diesel exports by sea Russia relaxed the measure introduced to stabilize the domestic market. The export restrictions will be lifted on the condition that manufacturers provide at least 50 percent of their diesel production for the domestic market. The government announced this.
Exports were banned after there were shortages in Russia, for example in agriculture. Manufacturers preferred to sell abroad because of higher income. This caused domestic prices to rise. According to the information, the export ban on gasoline remains in place.
Compensation payments would also be reinstated in full for oil processing companies that sell fuel in the country in order to mitigate losses from a lack of exports. The payments had been reduced in order to keep government spending within limits. According to a report in the Kommersant newspaper, compensation payments amount to 150 billion rubles (1.43 billion euros) per month.
Russia remains a major fuel exporter
The Russian leadership has decided on a series of measures to stabilize the supply of fuel in the resource-rich country, which should now take effect.
The deputy head of government responsible for energy issues, Alexander Nowak, announced this week that the export ban had led to falling prices on domestic markets. Gasoline prices, however, continued to rise. Nevertheless, a partial lifting of the export ban for gasoline is expected in the coming days, wrote Kommersant, citing experts.
Russia needs fuel exports for the state budget. Despite Western sanctions due to the war of aggression against Ukraine, the raw materials power is one of the largest exporters of gasoline and diesel.