Russia studying possibility of shipping petroleum products to Turkey and Uzbekistan as part of intergovernmental agreements - source

MOSCOW. Oct 27 (Interfax) - The Russian Energy Ministry and Tatneft will consider the issue of developing intergovernmental agreements with Uzbekistan and Turkey on the supply of petroleum products within the framework of indicative balances. This instruction was given following a meeting on the situation on the oil products market with Deputy Prime Minister Alexander Novak, which took place last week, a source familiar with the text of the resulting protocol told Interfax.

During the meeting, the situation on the petroleum products market was discussed, including measures for the stable functioning of the winter diesel fuel market.

As of September 21, Russia has instituted a ban on the export of diesel fuel and gasoline. An exception exists for supplies to EAEU countries according to indicative balances or protocols provided for by intergovernmental agreements, etc.

On October 6, the export of diesel fuel delivered to seaports by pipeline was allowed, provided that the manufacturer supplies at least 50% of its produced diesel fuel to the domestic market. The export of gasoline is currently prohibited.

In addition, the ministry was given the task of holding consultations with Kazakhstan on reducing the volume of possible diesel fuel exports to the Kazakh market as provided for in the indicative balance.

At one of the previous meetings, the task was set to prepare a list of preventive measures to ensure the stable functioning of the winter diesel market. This would be done by studying ways to increase its production, banning the export of kerosene, and changing the rules for charging excise duty on jet fuel, which is used to mix with diesel fuel. During the ensuing discussion, oil companies promised to increase diesel production to a level that would not cause a ban to be imposed on the export of jet fuel.