Russian Spending on Refinery Subsidies Hits Highest since 2022
Rigzone · Bloomberg News ·
Russian subsidies paid to oil producers for keeping road fuels in the domestic market climbed to the highest in more than four years, eating into the Kremlin's energy revenues.
Russian subsidies paid to oil producers for keeping road fuels in the domestic market climbed to the highest in more than four years, eating into the Kremlin's energy revenues.
The subsidies totaled 415 billion rubles ($5.1 billion) last month, according to Finance Ministry data published on Thursday. That's the highest level since the record payout of 450 billion rubles in April 2022.
The subsidies are designed to incentivize Russian oil producers to supply fuel to domestic consumers even when it's more attractive to export. As global crude and fuel prices jumped this year with the turmoil unleashed by the Iran war, the monthly payouts to Russian refineries increased from several billion rubles in January to hundreds of billions now.