Deputy Prime Minister Alexander Novak said Russia does not yet plan to broaden restrictions on diesel fuel exports. Bloomberg reports that no final decision has been made on this issue yet. If problems arise, the Ministry of Energy of the Russian Federation will review the situation. Russia lifted the diesel export ban that had been in place since mid August at the start of October, but certain controls remain. Major Russian manufacturers must allocate at least half of their diesel production for the domestic market, and exports are currently allowed only through pipelines with rail delivery still prohibited.
The initial ban on diesel exports helped steady domestic prices but contributed to a tighter global supply. Novak noted that authorities have rolled back most restrictions to prevent overflowing fuel storage tanks. He also indicated that talks continue on how to fund higher subsidies for diesel and gasoline for the home market, with a decision expected soon.
Earlier this week the Russian government stated it is focused on stabilizing retail prices for oil products. Market observers had anticipated moves that could reshape Russia’s commodity trading landscape as the country seeks balance between domestic relief and export revenues.
There is ongoing consideration of changes to the leadership and structure of the largest commodity exchanges within the Russian Federation as part of these efforts to stabilize the sector and support consumers.