Russia Raises Fuel Import Subsidies as Refinery Strikes Bite

Russia's state subsidy for companies importing motor gasoline increased by 6.6% month-on-month in August to 44,306 roubles per metric ton, equivalent to $525, while the payout for diesel surged 39.3% to 49,995 roubles per ton, according to calculations based on data from the Federal Antimonopoly Service.

The payments stem from an "import damper" mechanism introduced in July. The scheme is a monthly tax rebate that compensates authorized importers for the gap between the landed cost of foreign refined products and Russia's lower domestic wholesale benchmark prices for AI-92 gasoline and diesel. It applies specifically to fuel produced outside the Eurasian Economic Union and sold within Russia to ease domestic supply shortages.

Russia, long a net fuel exporter, has had to rely on imports after sustained Ukrainian attacks on its refineries caused gasoline shortages.

Seaborne gasoline imports were estimated at around 370,000 tons in August. If all that volume cleared customs and was sold domestically during the month, state budget payouts for imported gasoline are set to reach approximately 16.4 billion roubles in September.