Vice Prime Minister Alexander Novak, following a meeting regarding the situation in the Russian petroleum products market, has instructed relevant authorities to prepare a balanced action plan to maintain the stability of the domestic fuel market. The government’s press service reported this on June 22. “Vedomosti” has identified potential initiatives that may be included in this plan.

According to two sources familiar with the meeting’s outcomes, one of the measures under consideration may involve ensuring the import of motor fuel into Russia. Additionally, the Ministry of Finance is expected to adjust the damping mechanism in the fuel market to allow the government to make payments under this mechanism when importing petroleum products.

Currently, Russia imports gasoline and diesel fuel from Belarus. In October of last year, the Eurasian Economic Commission (EEC) Council zeroed out the import duty on supplies of gasoline, diesel, aviation, and marine fuel until June 30, 2026, previously set at 5%. In early June of this year, Russia proposed extending the zero import duty to June 30, 2027.

Another initiative that may be included in the government’s plan, according to “Vedomosti” sources, is the possibility of producing petroleum products in Russia with characteristics that slightly deviate from the current technical regulations. “Kommersant” reported in mid-June that the government had permitted certain refineries to produce gasoline and diesel fuel with deviations from the technical regulations regarding sulfur content and other quality indicators.

One source indicated that approximately one month may be needed to implement these measures. The plan will also include traditional actions, such as ensuring that oil companies prioritize fuel supplies to the domestic market and maximize their production capacities.

Another aspect may involve a temporary reduction of the gasoline sales norm on the exchange from 15% to 10% of production volumes from July 1 to September 30, 2026. A corresponding draft joint order from the Federal Antimonopoly Service (FAS) and the Ministry of Energy has been posted on the federal portal for regulatory legal acts. The volumes not sold on the exchange are expected to be directed to support agricultural producers and other socially significant consumers, according to one of the “Vedomosti” sources.

Additionally, the meeting presented the results of monitoring the situation in the domestic fuel market concerning pricing. The FAS reported on the measures being taken to prevent unjustified price increases for petroleum products and to curb violations of antitrust legislation.

Participants also discussed the situation related to the supply of petroleum products to the regions and assessed the level of accumulated reserves. Representatives of oil companies reported on their measures to saturate the domestic fuel market, maintain a stable pricing situation, increase production volumes of petroleum products, and bring new production capacities online.

Novak instructed the FAS to continue constant monitoring of fuel prices and to take necessary measures promptly if required.

The fuel market stabilization plan should be prepared in accordance with the existing regulatory mechanisms, as noted in the cabinet's announcement.

The payment under the damping mechanism for gasoline imports is not about attracting supplies but about maintaining prices in the domestic market, as gasoline and diesel prices in external markets are significantly higher, argues Igor Yushkov, an expert from the Financial University under the Government. Otherwise, gasoline at independent gas stations will cost tens of rubles more, agrees Sergey Kaufman, an analyst at FG "Finam."

However, subsidizing imports through the damping mechanism creates a dangerous precedent of financing foreign suppliers and may negatively impact Russian oil refining, believes Dmitry Prokofiev, Director of External Communications at NEFT Research. The reduction of environmental standards in fuel production will have limited impact, according to Kaufman.

Regulators should consider the possibility of centralized fuel purchases from foreign countries using funds from the reserve fund, which are allocated in the federal budget for emergency government purchases, believes Sergey Tereshkin, CEO of Open Oil Market. He also thinks it is important to maintain the existing norms for gasoline supplies to the exchange, as this will improve the assessment of the situation for independent gas stations.

All administrative measures that could help have already been implemented, notes Kaufman, leaving either an increase in imports or the restoration of production by preventing new attacks on refineries.

“Vedomosti” has sent inquiries to the Ministry of Energy, the Ministry of Finance, and the FAS.

Source: Vedomosti