Russia Introduces Restrictions on Exports of Gasoline, Diesel Fuel

According to the government decree, the restrictions are temporary and begin on September 21 "from the date of its official publication"

© Alexander Ryumin/TASS

MOSCOW, September 21. /TASS/. Russia has introduced restrictions on the export of gasoline and diesel fuel from September 21, the press service of the government reported on Thursday.

According to the government decree to that effect, the restrictions are temporary and begin on September 21 "from the date of its official publication," but the document does not specify the expiration date of the restrictions.

"The Russian government rules to establish, from the date of entry into force of this resolution, a temporary ban on the export of commercial gasoline <…> and diesel fuel <…>, from the Russian Federation including purchases made via exchange trading," the document says.

About exceptions

The ban applies mainly to gasoline and diesel fuel, but the government has introduced a number of exceptions. In particular, restrictions do not apply to supplies from Russia to the EAEU as part of indicative balances or protocols under intergovernmental agreements, export of fuel under intergovernmental agreements or as part of humanitarian assistance by government decision, transit of fuel, supplies to Russia’s military outside the country, as well as fuel to support the activities of Baikonur and Spitsbergen.

The restrictions do not apply to the transportation of fuel by individuals for personal use, gasoline and diesel in storage containers for use on the road, deliveries to South Ossetia and Abkhazia, as well as fuel already undergoing customs procedures.

Restrictions on the export of gasoline and diesel will help curb "gray" exports, saturate the domestic market, and may also lead to an additional reduction in prices, an official from the Energy Ministry told reporters on Thursday. The ministry also stressed that the restrictions are temporary.

Situation with fuel prices

In recent months, gasoline and diesel fuel have been trading at record levels, but began to decline this week. Last week, a source told TASS that the Russian government is considering two options for stabilizing fuel prices: a complete ban on the export of petroleum products for a certain period to saturate the market, as well as increasing the export duty to $250 per ton on petroleum products. First Deputy Energy Minister Pavel Sorokin said that a protective duty on fuel exports from Russia was being considered as a potential measure to stabilize the market, but how to compensate refineries was not yet resolved.

Earlier, Deputy Prime Minister Alexander Novak attributed the hike in wholesale fuel prices to an increase in prices for petroleum products on global markets, as well as to depreciation of the ruble against the dollar.

As of Thursday, stock prices for gasoline in Russia decreased by 4-5.7% and prices for diesel fuel dropped by more than 2%.

Export duty on fertilizers will increase from 7% to 10% at dollar rate above 80 rubles

Fees are calculated based on the dollar exchange rate for the month ending on the 25th of the previous calendar month

MOSCOW, September 21. /TASS/. Export duties on fertilizers will increase from the current 7% to 10% if the dollar exchange rate is above 80 rubles, according to the Cabinet resolution.

According to the document, from October 1, 2023 to December 31, 2024, the duty rate will be 7% if the average dollar exchange rate is less than 80 rubles and 10% if the exchange rate is above 80 rubles. Moreover, the minimum rate in both cases will be 1,100 rubles ($11.4) per ton for nitrogen fertilizers, 2,100 rubles ($21.8) per ton for phosphorus and 1,800 rubles ($18.7) per ton for potash.

Fees are calculated based on the dollar exchange rate for the month ending on the 25th of the previous calendar month.

Earlier, the Russian government announced that from October 1, flexible export duties will be applied to a wide range of goods and these duties will be tied to the ruble exchange rate. The measure is temporary and aimed at protecting the domestic market. The duty will range from 4% to 7% depending on the exchange rate of the national currency. At 80 rubles per dollar and below, the duty will be zero.

From January 1, Russia introduced export duties on mineral fertilizers in the amount of 23.5% for a year, which were in effect if the price of fertilizers exceeded $450 per ton. Deliveries below this price were not subject to duty. However, the Finance Ministry said in June that since the Russian budget received only about 5% of the export duty payments planned for this year, the government was studying the possibility of replacing this mechanism. As a result, from September 1, Russia began to apply export duties on fertilizers in the amount of 7% of the customs value, with the establishment of a minimum duty rate depending on the type of fertilizer.

Russia to introduce flexible export duties on alcohol, tobacco, fish, dairy products

The list also includes coffee, tea, cereals, prepared meat

MOSCOW, September 21. /TASS/. The Russian government has introduced flexible export duties on live animals, fish, dairy products, vegetables, fruits and a number of other goods in the amount of 4% to 7% at an exchange rate above 80 rubles per dollar, according to the relevant Cabinet resolution.

The list also includes coffee, tea, cereals, prepared meat and fish products, sugar and confectionery, cocoa, alcoholic and non-alcoholic drinks, tobacco products, and animal feed. There are exceptions for some items.

Earlier, the Russian government announced that from October 1, flexible export duties will be applied to a wide range of goods and these duties will be tied to the ruble exchange rate. The measure is temporary and aimed at protecting the domestic market. The duty will range from 4% to 7% depending on the exchange rate of the national currency. At 80 rubles per dollar and below, the duty will be zero.