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2026-11-05 21:04:29
[Russian Fuel Subsidies Rise to Four-Year High, Pressure on Energy Revenue] ⑴ Subsidies provided by Russia to encourage oil producers to prioritize supplying road fuel to the domestic market have risen to their highest level in over four years, further eroding the Kremlin's energy revenue. ⑵ Data released by the Russian Ministry of Finance on Thursday showed that total subsidies reached 415 billion rubles (approximately $5.1 billion) last month, the highest level since the record of 450 billion rubles set in April 2022. ⑶ This subsidy aims to encourage Russian oil producers to supply fuel to domestic consumers, even if exports are more economically attractive. ⑷ The turmoil caused by the war in Iran this year has driven up global crude oil and refined product prices, and subsidies received by Russian refineries have risen from billions of rubles in January to hundreds of billions of rubles today. ⑸ Most of the subsidies go to Russia's largest oil companies, including Rosneft and Tatarspor, which own major refineries. ⑹ The subsidies provide crucial financial support as these companies work to repair refinery facilities damaged by Ukrainian drone attacks. (7) Despite Russia’s ban on the export of most diesel, gasoline and aviation fuel, the government continues to maintain this subsidy policy.
