Alexander Novak, the Deputy Prime Minister of Russia, announced on Wednesday at the Russian Energy Week in Moscow that the diesel agreement with the United States is related to increased refining and production in Russia and means additional taxes for the country's budget. Novak described this agreement as "a positive signal for our economy" and stated that it would help increase costs in the social sector and investment opportunities.
Impact on Diesel Exports
Anton Siluanov, the Minister of Finance of Russia, announced on Tuesday that Russia has no export tariffs on diesel and that the export of this product will be reflected in the financial results of companies. He stated that companies will be able to export diesel and earn revenue and foreign currency, which is important for the balance of payments.
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On October 12, Novak stated that Russia might achieve a supply of 3 to 3.5 million tons of diesel per month to global markets by the end of the year, similar to before the crisis. He emphasized on Wednesday that these supplies would go to global markets, including the United States, and this amount constitutes more than 10 percent of the global diesel market.
Status of Refineries and Production Statistics
Russian refineries reached their lowest level in over 20 years in July, operating at a capacity of 3.7 million barrels per day. The total capacity of these refineries is about 6.5 million barrels per day. Reports as of September 15 indicate that three out of six major diesel refineries in Russia are either shut down or operating at about a quarter of their capacity due to Ukrainian drone attacks. Diesel exports in June fell to less than 1 million tons, according to reported trade estimates, while a year ago this figure was about 2.5 million tons per month.
Following military attacks, Russia launched 39 ballistic missiles and over 120 drones at Kyiv and Kharkiv on the night of October 14. Volodymyr Zelensky, the President of Ukraine, announced that at least 600,000 people have been left without electricity and added that "gifts to Putin will not lead to peace".
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