New fuel standards in Russia
The Russian government has made a decision to allow the circulation of gasoline standards Euro-2, Euro-3, and Euro-4 until July 1, 2027. This resolution, approved by Prime Minister Mishustin, opens up opportunities for the production, import, and sale of fuel that has been banned in Russia since 2013. In particular, Euro-2 gasoline allows for 50 times more sulfur than the current Euro-5 standard.
Experts' comments
Oil and gas market expert Mikhail Krutikhin commented on this decision in an interview on Sergey Auslender's YouTube channel, noting that Russians will be fueling their vehicles with fuel that could harm engines. He also emphasized that Rosneft, which is a co-owner of the Nayara Energy plant in India, is reaping significant benefits from the import of such fuel. The first batch of imported gasoline from this plant arrived in Russia in early August.
According to Krutikhin, Rosneft is earning extra money for the supply of gasoline, and after selling this fuel in the domestic market, it compensates its costs from the federal budget thanks to a damping mechanism.
“The company is profiting two, three times”- the expert stated, highlighting the financial benefits for Rosneft under the new fuel standards.
Thus, the new decision of the Russian government may have serious consequences for the quality of fuel used by motorists, as well as benefits for the company importing this gasoline.
This step by the government can be viewed as an attempt to mitigate the fuel shortage amid sanctions and other economic difficulties faced by Russia. At the same time, this decision raises concerns about the environmental impact and safety of motorists, as the use of low-quality fuel can lead to decreased efficiency and longevity of automotive engines. Consequently, the situation may have both economic and environmental consequences for the country.