25 Aug 2023 17:40

Russian Energy Ministry submits criteria for special exporters of petroleum products

TOBOLSK. Aug 25 (Interfax) - The Russian Energy Ministry has submitted to the government the criteria by which a list of exporters of oil products can be compiled to prevention of gray exports, Energy Minister Nikolai Shulginov told reporters.

"Currently, two options are being considered to prevent gray exports - a list of exporters of petroleum products or export licensing. We have submitted proposals to the government on the basic criteria on which a list of exporters might be formed," he said.

The Energy Ministry had proposed to establish a list of special exporters of oil products as one way of curbing gray exports, when petroleum products purchased on the domestic market and for which a fuel damper has been paid from the country's budget are exported outside Russia. Deputy Russian Prime Minister Alexander Novak backed the proposal.

But the Economic Development Ministry suggested exports be licensed, and Novak in the middle of August asked the Energy Ministry to look at that option as well.

Sources told Interfax earlier that the Energy Ministry's criteria for special exporters included the amount of crude refining or amount of paid taxes.

In an effort to combat gray petroleum product exports, on January 1, 2023 Russia introduced an additional payment of 20,000 rubles per tonne on top of the export duty for exports of gasoline and diesel fuel if the exporter is not a producer of the commodity. However, agents were allowed to operate in transactions with fuel exports.

On July 1, the government introduced additional measures aimed against false declaration of petroleum product exports.

Under the so-called tax maneuver in the oil industry, the export duty on crude oil and along with it the duty on oil products will be reduced to zero as of 2024.