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Deputy Prime Minister Alexander Novak has said that restrictions on the export of oil products from Russia cannot be ruled out to ensure that domestic demand is met. Restricting motor fuel exports from Russia would be a rather extreme measure and the government has other instruments at its disposal to incentivise local supplies. To recap, starting from 1 May, the threshold gasoline price in the damper formula is to go down RUB 4,000/t, increasing the gasoline subsidy USD 35/t under recent RUBUSD and European gasoline prices. With the internal market discount of USD 120/t and the resulting gasoline damper rate (with the new threshold price) of USD 148/t, we calculate that supplies to the domestic market will once again become profitable for refineries. Given that the percentage of gasoline being exported is some 13% of all deliveries, based on the most recent data from February 2021, the effect of such measure would in any case not be tangible for public oil companies, we believe.
The Ministry for Economic Development suggested that independent producers of hydrogen receive access to Gazprom’s gas transport infrastructure for blending hydrogen in the natural gas stream, Kommersant reported. This might reduce the cost of investment in the creation of a hydrogen transportation infrastructure, but poses some difficulties, as it would require the separation of hydrogen from methane by its final consumers (theoretically, the separation can take place at gas distribution facilities). There is no clarity on the issue. The suggestion is part of MinEconomy’s hydrogen energy roadmap. Gazprom, Novatek and Rosatom might become the key players in the future hydrogen market, according to the paper. The immediate step for carrying out this initiative might be permitting the creation of hydrogen production facilities near natural gas pipelines. MinEnergo commented that the initiative was being studied.
9.1.2 Automotive sector news
Russia’s sales of new light cars and light commercial vehicles (LCVs) jumped almost fourfold on the year to 151,964 in April from 38,922 vehicles in April 2020, the Association of European Businesses (AEB) said.
In January–April, sales rose 24.3% on the year to 515,934. “April 2021 new car sales are 151,964 units and 290.4% higher than the ‘Black April’ of the last year. Especially the four biggest local manufacturers show above-market performance compared to the same month of the last year when the lockdown affected them most.
The total sales of the first four months 2021 are 515,934 units and, as expected, 24.3% higher than 2020, but 4.5% below the sales of the same period of 2019,” Thomas Staertzel, chairman of the AEB Automobile Manufacturers Committee (AMC), said as quoted by the AEB. “So far, the sales achievement of this year supports our year-end forecast of 2.1% sales increase vs. last year, but, with the market getting its real trace, the AMC will be able to update its annual forecast in July.
The state support measures are still needed to further stabilize the customer demand and the business.” Sales of Lada cars of Russia’s largest carmaker
124 RUSSIA Country Report June 2021 www.intellinews.com