Authorities propose measures to stabilize the aviation fuel market

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Authorities propose measures to stabilize the aviation fuel market
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Novak has directed the exploration of allowing both Russian-origin and imported aviation kerosene into airports amid rising prices and potential fuel shortages. The Ministry of Transport assures that airports have sufficient reserves in place. Deputy Prime Minister Alexander Novak has instructed the Ministry of Energy, Ministry of Transport, and Rosaviatsia to examine the feasibility of Russian fuel refueling complexes (FRCs) accepting JET A-1 aviation kerosene of both domestic and foreign origin. Proposals must include provisions for refueling aircraft with this fuel type, as well as blending it with the widely used Russian grades RT and TS-1 in airport FRC storage tanks, two sources familiar with the directives told RBC.

This refers to the most common type of aviation kerosene in international civil aviation. In Russia, TS-1 and RT remain the primary aviation fuel grades, whereas JET A-1 is considered the global industry standard and is used by most foreign airlines.

Additionally, according to the sources, authorities are discussing the preservation of a damping mechanism to support consumers of imported JET A-1 kerosene. Novak has assigned the task of exploring the possibility of providing such compensation for imported fuel, similar to the system already in place for Russian-origin kerosene.

The kerosene damping mechanism has been in operation for airlines since 2021. The state compensates them for 65% of the difference between the export price of fuel and the annual threshold. In 2026, this threshold is set at 67,300 rubles per tonne.


A separate set of directives concerns the logistics of imported aviation kerosene. The Deputy Prime Minister has instructed the examination of issues related to receiving JET A-1 kerosene delivered by sea. This includes identifying discharge ports, terminals, unloading points, storage facilities, and subsequent fuel transfer to railway transport.

Why the need for imported fuel has arisen

The discussion of additional measures comes against a backdrop of rising aviation fuel prices. Exchange data on aviation kerosene has not been published since May 13, when the fuel cost 82,750 rubles per tonne. According to an RBC source in the oil industry, the St. Petersburg International Mercantile Exchange has recorded increased demand for aviation fuel: as of Monday, June 1, the price reached 110,000 rubles per tonne, approximately 33% higher than the last publicly available figure. The corresponding exchange index is no longer displayed on the trading platform’s website.

The RBC source also stated that only 180 tonnes of aviation fuel were sold during the trading session on June 1. For comparison, over the entire 2025 period, the exchange sold approximately 1.674 million tonnes of aviation kerosene.

An RBC source at a major Russian airport noted that in recent weeks, Rosaviatsia has intensified monitoring of kerosene availability at FRCs, linked to a potential aviation fuel shortage. The source attributes the shortfall to the increased frequency of Ukrainian drone attacks on Russian refineries since the beginning of May.

The Ministry of Transport, for its part, states that Russian airports are equipped with the necessary reserve of aviation fuel.

"Civil aviation in Russia continues to operate its transport program as normal," a ministry representative told RBC. "Flights are operating on schedule. Several independent aviation kerosene producers are operational across the country, as are alternative fuel supply companies in each region. The situation with energy supplies to airports, including those in the capital region, is traditionally under constant monitoring by the Ministry of Transport and the Ministry of Energy."

He reminded that the government has imposed a temporary ban on the export of aviation kerosene from Russia until November 30. "The goal is to ensure a stable situation on the domestic fuel market," the Ministry of Transport explained.

Sergey Tereshkin, CEO of the oil product marketplace Open Oil Market, believes that the current move is about easing import rules for aviation fuel, which will help mitigate the risks of a shortage. This indirectly indicates that unscheduled repairs may have affected the output of light petroleum products in general and aviation kerosene in particular, although the fuller picture is visible only to regulators who have data on fuel production broken down by specific refineries.

According to him, the logic of the decision fully meets market needs: amid growing shortage risks, it makes sense to relax fuel import rules. However, much depends on the supply chain distance, including from Turkey and China—the nearest geographically countries producing aviation fuel. The expert also noted that the damping subsidy for aviation kerosene is paid not to refineries, but to airlines.

Following the US and Israeli attack on Iran and the closure of the Strait of Hormuz, several regions experienced a shortage of aviation fuel, and kerosene prices rose. Over two weeks in late April to early May, global airlines cut the number of seats in their May schedules by 2 million amid fears of fuel availability in the coming weeks, the Financial Times reported.

When Russia last imported aviation kerosene

The Russian aviation industry has previously faced the need to import aviation kerosene by sea. In late 2010, AeroFuelz, one of the largest FRC operators in the country, supplied aviation kerosene by sea from South Korea to the Far East on its own tanker with a capacity of 2,500 tonnes. Even accounting for logistics costs and customs duties (then at 5%), the wingtip refueling prices made it possible to recoup the cost of importing fuel from abroad.

At that time, difficulties with refueling aircraft in the region were triggered by high ex-refinery fuel prices, and fuel imports into the country began for the first time in ten years.

On Monday, June 1, Aeroflot, in a statement accompanying its IFRS first-quarter results, separately described kerosene costs as "relatively stable" and added that they "did not have a significant impact on the overall cost dynamics." The company believes that "the main challenges for this item are still ahead," but links this to rising fuel prices at foreign airports, "which will be reflected in the reporting of subsequent periods." Aeroflot indicated that aviation fuel expenses in the first quarter "remained virtually at the level of the first quarter of 2025"—70.4 billion rubles, while the average cost per tonne "fell by 6.2%, while remaining high." "Payments under the fuel damping mechanism increased to the level of the first quarter of 2024 amid rising export kerosene prices," the airline added.

RBC has sent inquiries to the Ministry of Energy, the Ministry of Transport, Rosaviatsia, the office of Deputy Prime Minister Novak, as well as to the press services of Aeroflot, S7, Ural Airlines, Azimuth, Azur Air, and UVT Aero.

Source: RBC

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