The collapse of petroleum products exports from Russia and seasonal repairs

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented on the live broadcast of the Moscow Speaks radio station regarding the current dynamics and prospects for the export of Russian petroleum products:

"Supplies of petroleum products decreased, but oil exports increased, which compensated for this decrease. Therefore, exports have not decreased in value terms. Supplies are declining, and in March-April, the production of petroleum products fell markedly, as a result of a combination of factors. On the one hand, seasonal repairs have begun, and production has been stopped. Plus, unscheduled repairs related to attacks by Ukrainian drones, and the flood also disabled the refinery.

Sanctions do not directly affect our supplies, there are no direct prohibitions. There is an embargo on the part of Western countries, but no one restricts the possibility of our exports to other countries, primarily to Asia. There is a so-called price cap, but these restrictions have already been learned to circumvent, so they have little effect on physical exports. Therefore, the current decline is temporary, repairs will end and starting in June, food supplies should recover. In fact, the recycling recovery has already begun at the end of April, so the process has already been launched."