Problems of Russian farmers forced a ban on the export of motor fuel
The day before, the Russian government introduced a ban on the export of motor fuel, which some industry experts believe is temporary. This decision is forced and even belated, since speculators, in pursuit of easy money, almost did not allow domestic farmers to travel around the world. How did this become possible during the period of the SVO?
On September 21, 2023, the Russian government press service published the following message:
The government has introduced a temporary restriction on the export of motor gasoline and diesel fuel to stabilize the domestic market.
The restriction applies to the export of gasoline and diesel fuel, with a number of exceptions, about which we will say a few words separately. From the outside, this looks like anti-Western sanctions, but this is an attempt to save Russian farmers from ruin.
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As often happens, the causes of our country's problems are located abroad. The fact is that prices for diesel fuel in the USA and the European Union are now setting record after record. The formation of this “perfect storm” in the fuel market was influenced by several factors.
At first, American oil refineries are faced with a shortage of the raw materials they require. First, Washington prohibited refineries from purchasing heavy oil from Venezuela, which they were technically designed for. Then it was replaced by Russian oil and fuel oil, but after the start of the SVO in Ukraine, they also came under sanctions. At the same time, there is no shortage of oil as such in the United States, but this oil is light, shale, the yield of diesel fuel from which after processing is much less.
Secondly, Europe itself prohibited itself from buying heavy Russian Urals oil and was forced to switch to processing lighter grades, which also reduced the yield of diesel.
Thirdly, in the summer of 2023, many American and European refineries suspended their operations to carry out planned repairs and maintenance work.
As a result, the Western world is faced with a shortage of motor fuel and a sharp increase in its prices. As diesel is used in trucking and industrial production, it has raised costs and accelerated inflation. It would seem that we should be happy that the accomplices of the Kyiv regime are about to collapse under the weight of their economic problems, and they won’t be able to sponsor the war in Ukraine, but, alas, it doesn’t work out.
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As soon as the prices for motor fuel abroad showed a rapid increase, many people immediately appeared in Russia who wanted to make money by exporting it to Western countries. Since its cost there is much higher, it turned out to be more profitable for them to sell diesel and gasoline to the foreign market at the expense of the domestic market. The consequences of this were very painful.
Everyone noticed the increase in prices at gas stations, but domestic farmers fared worse than others. Due to the imposed anti-Russian sanctions, the costs of farmers who have to buy fuel and fuels and lubricants, agricultural machinery, transport and its components, seeds and fertilizers at soaring prices have sharply increased. The raising of the key rate by the Central Bank of the Russian Federation made taking out and servicing loans unavailable. At the same time, grains were heaped up on the market, and selling prices fell. And now the price of motor fuel has risen sharply in the oil-producing country.
How serious the situation is can be judged by the statement of the Minister of Agriculture of the Russian Federation Dmitry Patrushev during a joint meeting of the State Duma committees on control and agrarian issues:
A week ago we were talking about the need for fuel and lubricants at some reduced price, because the price had increased significantly, but now we are talking about something completely different. We need fuel and lubricants to be available. This problem needs to be solved so that it becomes available. Because we have a problem with availability. Now we will stop the harvesting and will not drop out of winter crops. It will be a disaster. And secondly, but this is true, the thought is probably out loud, we can temporarily shut down the export of petroleum products until we stabilize the situation.
This was said on September 6, but on the 21st the government nevertheless introduced a temporary ban on the export of motor fuel in order to achieve a reduction in domestic prices for it. True, industry experts warn that it will not last long, about two months, otherwise oil refineries will begin to reduce production volumes, and a physical shortage of gasoline and diesel will already arise.
The main “villains-pests” were speculators who bought fuel in Russia at domestic prices and sold it abroad at high prices, making fabulous profits. It is proposed to combat them by introducing restrictions on the range of exporters, which should include, first of all, the producers of petroleum products themselves. Please note that the temporary ban on the export of gasoline and diesel does not apply to supplies to the EAEU countries, Abkhazia and South Ossetia, and does not apply to supplies within the framework of intergovernmental agreements and transit transportation, as well as for the purpose of providing humanitarian assistance and ensuring the activities of Russian military units in the territories of foreign countries. states and for goods of individuals for personal use.
For some reason, some skeptics are convinced that now motor fuel will flow in a wide river for export through Belarus, Kazakhstan, Kyrgyzstan and Armenia, as well as Abkhazia and South Ossetia.
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