Russia implements fuel subsidies and imports to combat refinery shortages

Russia is implementing significant measures to combat domestic fuel shortages caused by Ukrainian drone attacks on its energy infrastructure. To stabilize the market and repair damaged refineries, the Russian government provided 305.5 billion rubles ($3.6 billion) in subsidies to oil companies in September, marking the largest monthly payout since April 2022. These subsidies aim to keep domestic fuel prices lower than international rates and offset production losses.

In support of these efforts, Belarus has adjusted its fuel shipments to Russia. In September, railway shipments of gasoline from Belarus to Russia decreased by approximately 13% to 170,000 tons, while diesel shipments fell by 29% to 105,000 tons, partly due to scheduled maintenance at a Belarusian refinery. Despite these monthly decreases, total gasoline shipments from Belarus to Russia for the first nine months of the year have increased twelvefold compared to the previous year, and diesel deliveries have quintupled.

To manage the crisis, Moscow has restricted the export of gasoline, diesel, and aviation fuel while relying on imports from Belarus, Kazakhstan, India, Turkey, and Morocco to maintain supply.