Russian subsidies paid to oil producers for keeping road fuels domestically surged to 415 billion rubles ($5.1 billion) in October, the highest since April 2022, according to Finance Ministry data. The payouts, designed to incentivize domestic supply over exports, have risen sharply as global fuel prices jumped amid the Iran war. Most subsidies flow to major firms like Rosneft PJSC and Tatneft PJSC, which also face repair costs from Ukrainian drone strikes on refineries, including the key Omsk plant.
Despite export bans on diesel, gasoline and jet fuel, the government maintains the subsidies, which consumed about half of October's net budget oil revenues of 829 billion rubles. Year-to-date subsidies total nearly $20 billion. Attacks paused in late October after President Donald Trump urged a halt to lower US fuel prices ahead of midterms.
Total net oil and gas revenues reached 971.2 billion rubles in October, up over 9% year-on-year and more than double September, boosted by profit-based tax payments.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing