In a move to respond to a stabilized domestic fuel market, the Russian government has decided to suspend its temporary ban on gasoline exports, according to a report by the RBC daily.
The decision, which has been confirmed by Russia’s Energy Ministry, comes as the country’s refineries and oil depots have built up sufficient stockpiles of motor gasoline and diesel fuel to meet domestic demand. As of May 15th, Russia had accumulated 2.1 million tons of gasoline and 3.4 million tons of diesel, indicating the market is sufficiently supplied.
Russia initially imposed the six-month ban on gasoline exports starting March 1st, though it exempted countries within the Moscow-led economic union as well as those with direct intergovernmental fuel supply agreements, such as Mongolia.
The Energy Ministry cited the “saturation of the domestic market and completion of unscheduled maintenance at refineries” as the key reasons for the decision to suspend the export restrictions. The official announcement of the lifted ban is expected to be published early this week, though the precise timeline was not specified.
This move signals Russia’s confidence in its ability to meet domestic fuel needs without the need for the previous export restrictions. It also provides Russia an opportunity to generate additional revenue through gasoline exports, as the global energy market remains volatile in the aftermath of the Ukraine conflict.
The lifting of the temporary ban could have implications for global gasoline supply and pricing, as Russia’s exports re-enter the international market. However, the ultimate impact will depend on the scale and timing of Russia’s resumed gasoline shipments overseas.