Deputy Prime Minister Alexander Novak has instructed relevant agencies to work on a number of issues aimed at stabilizing the domestic fuel market. Specifically, they are to hold consultations with Belarus to boost gasoline deliveries to Russia, RBC was told by two sources familiar with the content of the directives.
In addition, authorities are discussing the possibility of increasing payments under the import damping mechanism, including for Belarusian fuel. According to one of RBC’s interlocutors, it is not ruled out that corresponding amendments to the Tax Code will be introduced retroactively – as of June 1, 2026.
The mechanism for receiving the damping subsidy when processing Russian oil abroad with subsequent import of the produced fuel into Russia was enshrined in law in November 2025. The damping subsidy compensates oil companies for the difference between the profitability of fuel exports and its sale on the domestic market. The adopted law, in particular, made toll processing of Russian oil abroad economically comparable to processing within the country.
Furthermore, Novak instructed the Ministry of Energy and the Ministry of Finance to examine the possibility of extending the zero rate of import customs duty on gasoline until June 30, 2027. Another measure to support the domestic market, according to sources, could be a change in the tax regime for certain types of fuel. In particular, authorities plan to zero out the excise tax on AI-95 gasoline produced by blending AI-92 gasoline with octane-boosting additives at oil depots.
At the same time, the government intends to tighten control over the export of petroleum products. The relevant agencies have been tasked with preparing draft regulations imposing a complete ban on gasoline exports for two months, including supplies under certain intergovernmental agreements. Thus, restrictions may also apply to countries that were previously exempt from the export embargo.
In addition, the possibility of introducing a complete ban on diesel fuel exports is under discussion, with the exception of supplies under intergovernmental agreements. However, the proposed duration of such restrictions has not yet been determined.
On existing export bans
In Russia, a ban on gasoline exports has been in effect since April 1 until July 31. The embargo applies both to refineries with a production capacity of more than 1 million tonnes of petroleum products per year and to traders. The ban was introduced to prevent shortages ahead of the high-demand season, which traditionally occurs in spring and summer, as well as during the period of active agricultural work.
In addition, a temporary ban on diesel fuel exports remains in place, but only for non-producers – traders, oil depots, and plants with small production capacity. Also, on June 1, the government introduced a temporary embargo on the export of aviation kerosene, effective until November 30, 2026.
While restrictions on the export of gasoline and diesel fuel have been imposed repeatedly since September 2023 to stabilize the domestic market, supplies of aviation kerosene abroad have been banned for the first time. Traditionally, restrictions did not apply to export volumes under intergovernmental agreements.
At the same time, authorities are discussing a temporary ban on transit shipments of gasoline through Russian territory in order to redirect additional fuel volumes to Russian consumers, the sources said.
RBC has requested comments from Novak’s office, as well as from the press services of the Ministry of Energy and the Ministry of Finance.
Why the market needs additional volumes
An RBC source in the fuel market links the preparation of additional measures to saturate the country with fuel to a reduction in domestic inventories and a decline in supply at exchange auctions. The Ministry of Energy stopped disclosing data on petroleum product processing volumes as early as 2023; the ministry explained the closure of statistics as necessary to ensure information security of the petroleum products market under the “existing geopolitical situation.”
According to the source, the average volume of AI-92 gasoline sold on the St. Petersburg Exchange from May 25 to May 29 was 17,088 tonnes, which is 26% lower than the average since the beginning of the year of 23,000 tonnes per trading session. The figure for AI-95 grade over the past seven days was 9,072 tonnes – 43% below the year-to-date average. This could have occurred amid reduced throughput or temporary shutdowns of a number of refineries following drone attacks.
Exchange sales of diesel fuel also declined, although Russia’s diesel production is considered surplus and on average can account for up to 70% of total output. According to the RBC source, the average sales volume over the specified period was 48,707 tonnes, nearly 17% below the year-to-date average of 58,500 tonnes. He attributes the decline in exchange sales of diesel fuel to oil companies’ desire to profit from exports amid high global energy prices driven by the Hormuz crisis.
According to estimates from Platts (as seen by RBC), any export restrictions on Russian diesel will narrow the global market, given that Russia accounts for roughly 40% of global diesel exports. In May, Russian oil companies shipped 1.182 million tonnes of diesel or gasoil to the Mediterranean. This represents 37.3% of total imports into those countries.
How imports from Belarus work
Supplies of Belarusian fuel to Russia are carried out primarily through the St. Petersburg Exchange. Belarusian refineries sell gasoline and diesel to the state trader Promsyrieimport, which then sells these volumes on the exchange at domestic Russian prices. The difference between the purchase cost of the fuel and its sale price on the domestic market is compensated through damping subsidy payments from the budget.
RBC sent a request to the press service of the St. Petersburg Exchange.
Sergei Tereshkin, CEO of Open Oil Market, noted that the damping subsidy on gasoline and diesel for Belarusian refineries is calculated under the same rules as for Russian refineries, but only on the condition that these plants supply fuel through the St. Petersburg Exchange. “Even if all Belarusian gasoline were to enter the Russian market, it would cover less than 10% of Russia’s needs,” he said. Production of motor gasoline in Belarus amounts to just over 3 million tonnes per year, while demand from Russian motorists is nearly 40 million tonnes. Tereshkin added that Belstat does not provide a breakdown by gasoline grade, and the latest available data are for 2020.
However, the exchange is not the only channel for selling Belarusian fuel in Russia. Significant volumes of petroleum products are also supplied under direct contracts with Russian oil companies.
Supplies of Belarusian fuel to Russia are intermittent. Previously, the National Pricing Exchange Agency explained to RBC that the volumes of petroleum products sold by Belarusian refineries are volatile and depend on the balance of supply and demand at key production bases in Russia, weather conditions, and production volumes.
Source: RBC
