Russian FinMin objects to early lifting of moratorium on automotive fuel import
<p> MINSK, Aug 12 - PrimePress. The Ministry of Finance of the Russian Federation objects the early lifting of the moratorium on the import of automotive fuels, which was imposed until October 1, 2020, pointing at the shortfall in fiscal revenue, Russian Kommersant daily reports, citing its sources. </p> <p> </p> <p> According to Kommersant, under pressure of the Finance Ministry, the Russian government will most likely have no time to lift the moratorium on foreign fuel supplies to Russia ahead of schedule. The Finance Ministry opposes the early lifting of restrictions, as this can lead to a decrease in oil refining inside the country and, as a result, to a decrease in tax revenues from the damper, which is not charged on imported fuel. </p> <p> </p> <p> Freedom Finance analyst Valery Yemelyanov says the moratorium on the import of motor fuels into the Russian Federation will most likely not be lifted until oil prices return to the pre-crisis level of $50-55 per tonne (Brent brand cost $44.63 per barrel on August 11). </p> <p> </p> <p> “Otherwise, the Russian budget will be 300 billion rubles short in fuel sales, and Belarusian suppliers will enjoy all the benefits. Given the political tension between Minsk and Moscow, it is extremely doubtful that Russia will give any gifts to its neighbor,” Yemelyanov told RIA Novosti, “With its cheap gasoline, Belarus could temporarily occupy up to a quarter of the market in the border regions (Smolensk, Pskov and Bryansk). Local gas stations would reduce the prices by 7%.” </p> <p> </p> <p> Russia banned the import of oil products on June 1, 2020 to support the domestic oil refining sector. It was said that the moratorium could be lifted before its term ends. </p> <p> </p> <p> The Energy Ministry and the Federal Antimonopoly Service of Russia said in late July that the ban on the import of some types of fuel, which was imposed until October 1, 2020, could be lifted early, as demand in the domestic market was recovering. Later, the Energy Ministry published a draft decree of the government on the early lifting of the ban on the import of fuels into Russia. </p> <p> </p> <p> According to the National Statistic Committee of Belarus (Belstat), Belarus boosted the export of oil products to Russia in January-May 2020 by 392% year on year to $63.348 million. In physical terms, supplies to Russia increased in January-May 2020 almost 12-fold to 184,400 tonnes as in January-May 2019. </p> <p> </p> <p> According to the Argus Media, the April sales of motor fuels to Russia brought Belarusian $100 more per tonne of oil products than supplies in the Latvian Ventspils port direction. </p> <p> </p> <p> The Belarusian Oil Company CJSC (BelOil - Belarus’ special exporter of petroleum products) has been operating in the Russian market through its subsidiary European Trading Company LLC since 2012. Belarusian petroleum products are sold in Russia both under direct contracts and on the St. Petersburg International Commodity Materials Exchange and the St. Petersburg Exchange. End </p>
2020-08-12
Primepress
MINSK, Aug 12 - PrimePress. The Ministry of Finance of the Russian Federation objects the early lifting of the moratorium on the import of automotive fuels, which was imposed until October 1, 2020, pointing at the shortfall in fiscal revenue, Russian Kommersant daily reports, citing its sources.
According to Kommersant, under pressure of the Finance Ministry, the Russian government will most likely have no time to lift the moratorium on foreign fuel supplies to Russia ahead of schedule. The Finance Ministry opposes the early lifting of restrictions, as this can lead to a decrease in oil refining inside the country and, as a result, to a decrease in tax revenues from the damper, which is not charged on imported fuel.
Freedom Finance analyst Valery Yemelyanov says the moratorium on the import of motor fuels into the Russian Federation will most likely not be lifted until oil prices return to the pre-crisis level of $50-55 per tonne (Brent brand cost $44.63 per barrel on August 11).
“Otherwise, the Russian budget will be 300 billion rubles short in fuel sales, and Belarusian suppliers will enjoy all the benefits. Given the political tension between Minsk and Moscow, it is extremely doubtful that Russia will give any gifts to its neighbor,” Yemelyanov told RIA Novosti, “With its cheap gasoline, Belarus could temporarily occupy up to a quarter of the market in the border regions (Smolensk, Pskov and Bryansk). Local gas stations would reduce the prices by 7%.”
Russia banned the import of oil products on June 1, 2020 to support the domestic oil refining sector. It was said that the moratorium could be lifted before its term ends.
The Energy Ministry and the Federal Antimonopoly Service of Russia said in late July that the ban on the import of some types of fuel, which was imposed until October 1, 2020, could be lifted early, as demand in the domestic market was recovering. Later, the Energy Ministry published a draft decree of the government on the early lifting of the ban on the import of fuels into Russia.
According to the National Statistic Committee of Belarus (Belstat), Belarus boosted the export of oil products to Russia in January-May 2020 by 392% year on year to $63.348 million. In physical terms, supplies to Russia increased in January-May 2020 almost 12-fold to 184,400 tonnes as in January-May 2019.
According to the Argus Media, the April sales of motor fuels to Russia brought Belarusian $100 more per tonne of oil products than supplies in the Latvian Ventspils port direction.
The Belarusian Oil Company CJSC (BelOil - Belarus’ special exporter of petroleum products) has been operating in the Russian market through its subsidiary European Trading Company LLC since 2012. Belarusian petroleum products are sold in Russia both under direct contracts and on the St. Petersburg International Commodity Materials Exchange and the St. Petersburg Exchange. End