Russia is temporarily banning the export of gasoline and diesel fuel to all countries outside the four former Soviet republics to stabilize the domestic market, the Russian government said in a statement.
It notes that the ban does not apply to fuel supplied under intergovernmental agreements to members of the Moscow-led Eurasian Economic Union, which includes Belarus, Kazakhstan, Armenia and Kyrgyzstan. “Temporary restrictions will contribute to the saturation of the fuel market, which, in turn, will lead to lower prices for consumers,” – says the government statement.
The Energy Department said in a statement that the restrictions would prevent unauthorized “grey” exports of motor fuels. In recent months, Russia has experienced a shortage of gasoline and diesel fuel. Wholesale fuel prices rose, although retail prices were capped in an attempt to contain the official inflation rate.
The shortage of fuel is especially acute in some southern regions of Russia, where it is vital for harvesting. The acute crisis could become an unsettling factor for the Kremlin ahead of the presidential elections in March.
According to traders, the fuel market was affected by such factors as repair work at oil refineries, difficulties on railways and the weakening of the ruble, which is an incentive for fuel exports, as well as attacks by Ukrainian drones, which are increasingly active in the fuel and energy infrastructure of the Russian Federation.
In the first 20 days of September, Russia has already cut diesel exports by sea by nearly 30% to about 1.7 million metric tons compared with the same period in August, according to traders and LSEG.
The government statement says that “previously, in order to stabilize the situation on the fuel market, the government increased the volume of mandatory supplies of gasoline and diesel fuel to the commodity exchange,” and that “purchases of fuel for the needs of agricultural producers are also monitored on a daily basis with immediate adjustment of volumes.”
Last year, Russia exported 4.817 million tons of gasoline and almost 35 million tons of diesel fuel.
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