Russia decides who can and cannot export petroleum products in foreign currency
In Russia, the division of the export market for petroleum products has begun
One of the largest export sectors of the Russian economy, with an annual turnover comparable to the GDP of a small Eastern European country, is on the verge of a radical change in the rules of the game: the government wants to decide who can and cannot perform this activity.
The export of petroleum products, which brings more than $100 billion to the economy annually, could become the lot of a select few companies.
The government has already started drawing up a "list" of those who will be allowed to sell diesel and petrol for foreign currency. The criteria for such a "list" have been sent to the Cabinet, Energy Minister Nikolai Shulginov said on Friday.
“Two options are being considered: introducing a list of exporters of petroleum products or introducing export licenses” , quotes RIA Novosti.
Russian exports of petroleum derivatives by sea. Source Vortexa via Bloomberg
In late June, Deputy Prime Minister Aleksnadr Novak gave instructions to prepare restrictions on the export of petroleum products after gasoline prices rose by 70% and refreshed all-time highs. The authorities have attributed the "overheating" of the market to "grey" exporters, small operators operating at the edge of the market and not easily traceable, hence the imposition of controls.
Traders, on the other hand, see the situation differently: according to them, prices are dispersed by the big oil companies. They are holding back fuel, creating an artificial deficit to offset revenue reductions from recent production cuts.
According to Vortexa, Russia exports petroleum products in the amount of about 2.5 million barrels per day. At its peak – in March 2023 – volumes reached 3 million barrels per day, but fell to 2.2 million in August.
Almost 40% of fuel exports are diesel, which are actively bought by African countries and European states that did not join the sanctions. Almost a fifth is made up of naphtha, a key raw material for the production of gasoline, and the rest is made up of heating oil and jet fuel.
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The article Russia decides who can and cannot export oil products in foreign currency comes from Scenari Economics .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-russia-decide-chi-puo-e-non-puo-esportare-prodotti-petroliferi-in-valuta-estera/ on Tue, 29 Aug 2023 14:51:43 +0000.