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Reasons Russia reintroduces ban on petrol exports till end of 2024

Published by Tope Fakinlede on August 14th, 2024.

Reasons Russia reintroduces ban on petrol exports till end of 2024

On Wednesday, the Russian government announced a six-month extension of its ban on petrol exports, set to last from September 1 to December 31, 2024. This move aims to stabilize the domestic fuel market following significant price increases.

The government explained that the restriction is necessary to maintain price stability amid ongoing seasonal demand and scheduled maintenance at oil refineries. The ban follows an initial six-month export prohibition implemented in March, which was temporarily lifted between May and July due to a temporary oversupply in the domestic market.

However, the new ban will exclude shipments covered by intergovernmental agreements, including those with members of the Eurasian Economic Union—Belarus, Kazakhstan, Kyrgyzstan, and Armenia.

Despite having extensive energy reserves, Russia imposed a similar export restriction last year on diesel and petrol to counteract the impact of rising pump prices on consumers, exacerbated by the weakening ruble and sanctions.

In 2023, Russia produced 43.9 million tonnes of petrol. Oil and gas revenues are crucial for Moscow, particularly as the country continues to fund its military efforts in Ukraine. Recently, Ukrainian forces have disrupted fuel supplies by targeting Russian fuel depots with drone attacks.