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Refined Products, Gasoline
September 12, 2024
By Kelly Norways and Elza Turner
HIGHLIGHTS
Presidential spokesperson unconcerned over gasoline availability
Moscow refinery Euro+ complex expected online soon after drone attack
Fuel prices stable as autumn harvest underway; Minister of Agriculture
Gasoline supplies for Russia's military have been resilient to Ukrainian drone strikes, according to Moscow leadership, with the country's refining infrastructure having been a key target for attacks again in recent weeks.
Speaking to Russia's Interfax Sept. 11, Russian presidential spokesman Dmitry Peskov said there were "no concerns" around gasoline availability for Russia's military due to the attacks.
"Thanks to the defense mechanisms, the air defense, those massive attacks have a minimum effect," Peskov said, adding that measures were being taken to mitigate the impact of attacks on energy resources.
The Ministry of Defense said Sept. 12 it had destroyed two Ukrainian drones targeting its Belgorod and Kursk regions as attacks have continued to target the country's south, while refineries as far as 1,300 km from the Ukrainian front line have been attacked previously.
The 240,000 b/d Moscow refinery was attacked Sept. 1, taking its Euro+ complex offline, with market sources expecting operations to resume Sept. 16. Meanwhile, fuel storage depots close to the front line have been picked off by attacks that have, in some cases, left fires blazing for weeks.
While Russia has downplayed the impact of drone attacks, it took measures to conserve domestic supplies in August when a ban on its gasoline exports was extended to the end of the year.
Gasoline prices have since eased from soaring prices close to the record highs of summer 2023, led by price drops in premium unleaded gasoline over recent weeks.
Prices for the fuel type had maintained high levels over the summer, but have declined since August after the Norsi refinery restarted its FCC and reformer units and Belarus increased its gasoline supply on the St. Petersburg exchange, according to market sources.
The government has not imposed restrictions on its larger diesel export market, which was subject to similar measures last year.
Speaking at a meeting in the Kremlin Sept. 11, Minister of Agriculture Oksana Lut said farmers were fully supplied with fuel and prices were stable, contrasting to the environment last year when soaring prices ahead of autumn harvest season triggered export bans.
Lut also said that despite inclement weather this year Russia expected a grain harvest of 132 million metric tons, down from 148 million metric tons in 2023, including 72 million metric tons of wheat. The harvest was completed on around 70% of the arable land, she said.
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