Russian Oil Firms Draw $9.95 Billion in Subsidies as 38 Drone Attacks Cripple Refineries
Updated
Updated · The Moscow Times · Jun 9
Russian Oil Firms Draw $9.95 Billion in Subsidies as 38 Drone Attacks Cripple Refineries
1 articles · Updated · The Moscow Times · Jun 9
Summary
716 billion rubles ($9.95 billion) in state support went to Russian oil companies in April and May, with May payments alone reaching 357.3 billion rubles through fuel-price compensation and refinery tax rebates.
38 Ukrainian drone attacks on refineries from January to May — including 16 facilities hit in May — helped drive refinery utilization down 14% this year and about 20% below prewar levels.
Those subsidies absorbed much of the budget benefit from higher crude prices: support equaled about 40% of May oil-sector extraction tax revenue and 46% in April.
34% year-on-year growth in May oil and gas revenue has not reversed the broader slide, with cumulative energy revenue for the first five months still 30% below a year earlier.
6% to 12% gasoline price gains since early May show the support has not contained fuel inflation, as officials weigh allowing prices to rise another 1.5 rubles per liter to fund refinery repairs.