There were fuel shortages in Russia because refineries earned more from it abroad than on the domestic market. The Kremlin then imposed an export ban two weeks ago. Diesel prices then shot up. Now the export ban has been relaxed again.
Two weeks after banning 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 supply at least 50 percent of their diesel production for the domestic market, the government announced on Friday.
The gasoline export ban remains in place
Exports were banned after there were shortages in Russia, for example in agriculture. Manufacturers preferred to sell abroad due to higher revenues. This caused domestic prices to rise. According to the information, the gasoline export ban remains in force.
Compensation payments would also be fully reinstated for oil processing companies selling fuel in the country to ease losses due to a lack of exports. To keep government spending in check, payments were reduced. According to a report in the newspaper Kommersant, the compensation amounts to 150 billion rubles (1.4 billion euros) per month.
Diesel prices in Russia fell
Russian leaders have decided on a number of measures to stabilize fuel supplies in the resource-rich country. These measures should come into effect now. 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. However, gasoline prices continued to rise. Nevertheless, a partial lifting of the gasoline export ban is expected in the coming days, Kommersant wrote, citing experts.
Russia needs fuel exports for the state budget. Despite Western sanctions as a result of the war of aggression against Ukraine, the raw materials power is one of the largest exporters of gasoline and diesel.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
