In a bid to support the country’s refineries, the Russian government introduced a measure to revoke step-up export duties on select petroleum products, including lubricants.
The challenges stem at least partly from an international embargo set up after Russia’s invasion of Ukraine, but the industry has also been targeted in recent drone attacks by Ukraine.
Effective since April 5, the new regulations offer relief to refiners meeting specific criteria. Export custom duties of up to 50,000 rubles (U.S. $542) per metric ton will no longer be applied to a range of products, lubricating materials, petroleum jelly, paraffins and waxes.
Since embargoes were imposed by the European Union, the United States and allied nations, Russian oil and oil products suppliers have worked to develop new markets or to find other ways around the embargoes.
Some buyers have reaped benefits of Russian suppliers having to sell those products at reduced prices.