Vice Prime Minister Alexander Novak, following a meeting on the Russian fuel market situation, tasked relevant authorities with preparing a balanced action plan to maintain the stability of the domestic fuel market. This was reported on June 22 by the government press service. Vedomosti discovered which initiatives may be included in this plan. According to two sources from Vedomosti familiar with the meeting's outcomes, the list of measures may include ensuring the import of motor fuels into Russia. Meanwhile, the Ministry of Finance should adjust the damping mechanism in the fuel market so that the government can make payments on it when importing petroleum products. Currently, Russia imports gasoline and diesel fuel from Belarus. In October of last year, the Eurasian Economic Commission (EEC) council eliminated the import duty on gasoline, diesel, aviation, and marine fuel supplies until June 30, 2026, with the previous duty rate being 5%. In early June this year, Russia proposed extending the zero import duty until June 30, 2027. Another initiative that may be included in the government plan, according to Vedomosti sources, is the possibility of producing petroleum products in Russia with characteristics that slightly deviate from the existing technical regulations. Kommersant reported in mid-June that the government allowed certain refineries to produce gasoline and diesel fuel with deviations from the technical regulations on sulfur content and other quality indicators. According to one of Vedomosti’s sources, implementing these measures may require about a month. The plan will also include traditional measures such as ensuring fuel supply priorities for oil companies in the domestic market and maximizing their production capacities. Another aspect may include a temporary reduction – from July 1 to September 30, 2026 – of the gasoline sales norm on the exchange from 15% to 10% of production volume. The corresponding draft joint order of the Federal Antimonopoly Service (FAS) and the Ministry of Energy has been posted on the federal portal of regulatory legal acts. It is proposed that the volumes not supplied to the exchange be directed to meet the needs of agricultural producers and other socially significant consumers, according to one of Vedomosti's sources. In addition, the meeting presented the results of monitoring the fuel market situation regarding pricing. The FAS reported on measures being taken to prevent unjustified price hikes for petroleum products and to curb violations of antitrust legislation. Participants also discussed the supply situation for petroleum products to regions and assessed the level of accumulated reserves. Representatives of oil companies reported on measures taken to saturate the domestic fuel market, maintain stable pricing, increase petroleum production volumes, and commission new production capacities. Novak instructed the FAS to continue continuous monitoring of fuel prices and, if necessary, take prompt action. The fuel market stabilization plan must be prepared considering existing regulatory mechanisms, according to the government statement. Payment under the damping mechanism for imported gasoline is not about attracting supplies but about keeping domestic prices stable, since the cost of gasoline and diesel on external markets is significantly higher, argues Igor Yushkov, an expert from the Financial University under the Government. Otherwise, gasoline at independent gas stations will cost significantly more, concurs analyst Sergey Kaufman from FG Finam. However, subsidizing imports through the damping mechanism creates a dangerous precedent for financing foreign suppliers and could adversely impact Russian oil refining, believes Dmitry Prokofiev, Director of External Communications at NEFT Research. The reduction of environmental standards during fuel production will have a limited impact, according to Kaufman. Regulators should consider the option of centralized fuel purchases from abroad using funds from the reserve fund, which are allocated in the federal budget for emergency government purchases, believes Sergey Tereshkin, CEO of Open Oil Market. He also suggests that it is important to maintain current gasoline supply standards on the exchange, as this will improve the evaluation of the situation by independent gas stations. All administrative measures that could help have already been introduced, explains Kaufman; the remaining options are either an increase in imports or a restoration of production by preventing new attacks on refineries. Vedomosti has sent inquiries to the Ministry of Energy, the Ministry of Finance, and the FAS. Source: Vedomosti