Russian refinery subsidies jump sixfold in June
Russian Ministry of Emergency Situations
Payments from Russia’s state budget to refineries that
supply the domestic
market rose more than sixfold in June year-over-year, Bloomberg reported
on June 3, as the government moves to ameliorate fuel shortages.
The Russian Finance Ministry said that the government paid refineries RUB210.6 billion ($2.7 billion) last month to partially offset the gap between domestic and export prices. Bloomberg said it was the largest monthly payment since December 2023. The rise in subsidies was also linked to higher international fuel prices after disruptions in the Strait of Hormuz.
Bloomberg reported that boosting domestic fuel supplies became a top government priority after Ukrainian strikes on refineries worsened shortages. The subsidies are intended to encourage companies to leave more petroleum products inside Russia and offer them to consumers at lower prices. Without the payments, domestic diesel and gasoline prices would have risen significantly, increasing living costs and inflation, an outcome Moscow wants to avoid before parliamentary elections in September.
The government continued making payments even after banning most gasoline exports through the end of July. Russian propaganda outlet RBC reported that as of June 29, official restrictions on fuel sales had been imposed in more than 40 Russian regions and in occupied Ukrainian territories; complaints of shortages came from 85 regions.
The fuel crisis that followed Ukrainian strikes pushed
gasoline prices in 10 Russian regions and in occupied Crimea and Sevastopol to
levels higher than in the United States. On June 28, dictator Vladimir
Putin acknowledged gasoline shortages after Ukrainian drone strikes on
refineries and said the export ban was imposed “in the interests of domestic
consumers.”
The military war may be swinging in our favor, but the information war continues.
Just as an army needs soldiers, so does a free society need its journalists to ensure that people have access to honest, trustworthy voices to understand the world around them.
For the past five years, The New Voice of Ukraine has been working tirelessly to push back against Russian narratives and defend democracy. But we cannot do it alone.
Please consider supporting us on Patreon for just $5 a month – your donation does directly to supporting journalists and ensuring that this front of the infowar says solid and defended.
Thank you.
Follow us on Twitter, Facebook and Google News
