UPDATE 1-Russia plans to cut oil refining subsidies by $377 mln a month

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds detail) MOSCOW, April 28 (Reuters) - The Russian finance ministry plans to halve subsidies to oil refiners from July 2023, local news agencies reported on Friday, quoting finance minister Anton Siluanov. Payments from the budget to oil refineries will decline by 30 billion roubles ($377 million) a month, Siluanov was quoted as saying. The subsidies are being cut after the country's federal budget balance slid to a deficit of 2.4 trillion roubles in the first quarter as Moscow spent heavily and its energy revenue fell. The savings will reduce Russia's budget shortfall, the minister was reported as saying by the Interfax news agency. The subsidies, known as the damping mechanism, were introduced in 2019 to prevent excessive exports of fuel and ensure sufficient stocks to meet domestic demand. Payments to companies under the scheme exceeded 2.1 trillion roubles last year.
($1 = 79.5500 roubles) (Reporting by Vladimir Soldatkin Editing by David Goodman)

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