Russian authorities could impose protective duties on oil exports

My FX Forum

Staff member
The government of the Russian Federation threatened oil producers with introduction of protective tariffs on the export of oil and oil products. This measure can be implemented to control inflation in petrol and diesel prices.

The representatives of the Russia's Energy Ministry were instructed to negotiate the stabilization of petroleum product prices in the domestic market with major oil companies . Dmitry Kozak, Russia’s Deputy Prime Minister who oversees the Russian fuel and energy complex, estimated the probability of introducing protective export duties as very high. He noted that such measures are necessary to make the sale of those goods equally beneficial in both the foreign and domestic markets.

His opponent, Alexei Sazanov, Director of the Tax&Customs Policy Department, Russian Ministry of Finance, is confident that imposing protective duties on the export of petroleum products will not affect oil prices, but will seriously damage refiners, especially independent refineries.

The current situation was discussed at a meeting with the top oil companies' heads. During the discussion, various measures were considered to stabilize the situation with motor fuel prices. Analysts consider that this will help avoiding the introduction of protective tariffs.

According to experts, the Russian authorities are trying to keep gasoline prices within inflation.