Banning gasoline exports will ensure market stability

Sergey Kondratiev, Principal Director on Economic Studies at the Institute for Energy and Finance, commented to the TASS news agency on the ban introduction on gasoline exports from Russia.

"It seems to me that this decision is just illustrated by the proverb about the "cart in winter". The government is preparing for problems in the fuel market ahead of time, moving from reactive to proactive actions. I think this is a good decision for the market and for consumers, especially considering that the summer in Europe and North Africa will be difficult due to logistics problems in the Red Sea, which will lead to an increase in gasoline prices in Europe and Africa," Sergey Kondratiev said.

The expert noted that the impact on the industry may be negative, since the government has not resorted to direct export restrictions for more than 20 years, using customs and tariff measures and verbal interventions.

"The turnaround took place in September 2023, and now we are restricting exports again. If this becomes a permanent solution, then [such a measure] could create serious problems for the industry in the future," he stressed.

Kondratiev added that given the unplanned repairs and the continuing congestion of the Russian Railways, the government does not have many options to ensure market stability.