Russian Government to Evaluate Potential Resumption of Gasoline Export Ban by End of July

The government will evaluate the situation and market conditions at the end of July to decide on the potential resumption of the gasoline export ban in August. Currently, the situation is relatively stable, Deputy Prime Minister Alexander Novak told reporters, RIA Novosti reports.

The ban on gasoline exports from Russia came into force on September 21, 2023, after farmers faced challenges during fieldwork, such as shortages of fuel and lubrication materials, along with a rise in fuel prices. The restriction remained in effect until the second half of November and was renewed starting March 1, 2024, for a six-month period. On May 20, due to domestic market saturation, it was suspended until June 30 and then extended once again until July 31.

“We had a discussion last week, and generally speaking, if the situation is challenging, we will not extend the permit for export in August. For now, it has been extended only until the end of July. Half a month has passed, and from now on, we will be closely monitoring the situation,” Alexander Novak said.

“We will, of course, consider this, taking into account the current circumstances. The final decision for August will be made at the end of July,” he added.

He assessed the current situation in the fuel market as stable, with the exception of AI-95. The issue is being addressed, as there are reserves for it, and current repairs to some plants are proceeding according to schedule. These repairs will be finalized in the near future, so “the volumes will be as before.”.

“This is the market’s reaction to the overall situation, which is due to the ongoing repair campaign. Unfortunately, the market is sensitive at the moment. We will stabilize it, as nothing serious is happening,” the Deputy Prime Minister concluded.

The Federal Antimonopoly Service (the FAS of Russia) supports the reinstatement of the ban on Russian gasoline exports starting August 1, 2024. However, the issue is currently not under discussion by the authorities, the agency’s press service told Agroexpert at the end of last week.