Suryaa Business Desk: Keeping in view the control of fuel prices in the international market and domestic needs, the Russian government has taken a key decision on fuel exports.... The Russian government has taken a key decision on energy exports keeping in view the domestic needs and the control of energy prices in the international market. Russia has announced that it will extend the previous moratorium on diesel exports until the end of this year. But in order to implement the new fuel supply agreement with the United States, under the special quota system, only a few selected companies will be exempted from exporting diesel to foreign countries, according to reliable sources.
Russia has been implementing strict restrictions on the sale of diesel and marine fuel for some time to prevent fuel shortages in the domestic market. In this context, the latest decision taken by Russia has become a topic of discussion in the global energy market. Experts analyze that this quota system helps to move only limited reserves abroad in accordance with the terms of the strategic agreements signed with the US. These special permits will be given to export fuel produced by Russian refineries within certain limits.
At the current moment of volatility in the global energy supply system, this dual policy followed by Russia is likely to have an impact on international prices. Russia chose this route to maintain diplomatic agreements while keeping prices under control domestically. Market sources feel that how the supply and demand conditions of diesel in the global market will change in the coming months will depend on the distribution of this quota.