Russia has declared a six-month prohibition on petrol exports as the government, led by Vladimir Putin, strives to satisfy the fuel needs of its domestic drivers and agricultural sector.
Set to commence on March 1, this embargo was confirmed by a representative for Deputy Prime Minister Alexander Novak. It also accommodates the scheduled maintenance of oil refineries.
This move mirrors a previous embargo implemented from September to November of the preceding year, aimed at addressing domestic fuel price surges and scarcities.
During that period, only four former Soviet nations – Belarus, Kazakhstan, Armenia, and Kyrgyzstan – were exempted.
Reflecting the escalating fuel crisis in Russia, the current ban will be broader, not including member countries of the Eurasian Economic Union, Mongolia, Uzbekistan, and two regions in Georgia with Russian support – South Ossetia and Abkhazia.
Rouble rises amid stable oil prices
The Russian rouble started stronger, supported by steady oil prices and a reduced demand for foreign currencies from exporters in anticipation of tax payments.
The rouble gained 0.2 percent against the dollar, standing at 92.16, and increased by 0.2 percent against the pound, reaching 116.8. However, it saw a slight decline of 0.1 percent against the euro, trading at 100.
On Monday, the Russian currency reached a one-week peak, as trading resumed following the imposition of the latest Western sanctions against Moscow.
Bogdan Zvarich, the chief analyst at banki.ru online marketplace, attributed the rouble’s strength to stable oil prices and the seasonal need for roubles among exporters for tax payments.
Zvarich commented, “Consequently, the American currency might fall below 92 roubles during the trading session.”
The rouble is expected to be bolstered, at least temporarily, by the end-of-month tax payments, which typically lead exporters to convert their foreign exchange earnings to fulfill local duties.
Brent crude oil, a key benchmark for Russia’s primary export, rose by 0.4 percent to $82.87 per barrel. In response to domestic shortages and high prices, Russia has imposed a six-month ban on gasoline exports starting from March 1.
