Russia's Energy Ministry prepares draft agreements with oil companies on fuel supplies to domestic market - sources

MOSCOW. April 21 (Interfax) - Russia's Energy Ministry has prepared draft agreements with oil companies on supplying petroleum products as part of measures to stabilize and develop the domestic market, sources familiar with the situation told Interfax.

Interfax's sources said that a government resolution must precede the signing of the agreements.

The agreements envisage that the Energy Ministry will recommend to companies planned production volumes and shipments to the domestic market, exchange sales volumes, and export volumes of Class 5 gasoline and diesel fuel.

Companies in turn undertake to implement the recommendations by taking into account the availability of production and logistics capabilities and corresponding demand on the domestic market.

Companies will be required to prioritize fuel supplies to the domestic market through all distribution channels.

Meantime, oil producers will be required to ensure that retail prices for gasoline and diesel change in line with inflation according to the Federal State Statistics Service (Rosstat) this year by taking into account changes in the fiscal burden in terms of VAT and excise taxes. A separate clause specifies the condition for ensuring break-even sales of petroleum products in the Far East regions.

Oil companies will have the right under the agreement to discuss with the Energy Ministry amendments to recommendations on planned fuel production and sales volumes in the event of a force majeure.

The Energy Ministry and the Federal Anti-monopoly Service will monitor implementing the recommendations. The signed agreement will be in effect until the end of 2026.