Rosneft chief proposes emergency measures to stabilize Russia’s fuel supply

Rosneft Chief Executive Officer Igor Sechin has submitted a package of proposals to Russian President Vladimir Putin aimed at stabilizing the country's fuel market amid ongoing challenges affecting the refining sector.

Sechin's recommendations focus on adjusting fuel exchange trading regulations in response to disruptions caused by damage to oil refineries, Caliber.Az reports, citing Russian media.

President Putin has instructed Deputy Prime Minister Alexander Novak to review the proposals and present a report on their feasibility and potential implementation.

Among the measures put forward, Sechin proposed temporarily suspending the existing mandatory exchange-trading quotas for gasoline and diesel fuel. As an alternative, he suggested prioritizing direct consumers in fuel sales while restricting the participation of intermediaries in exchange trading.

According to Sechin's assessment, intermediaries currently account for up to 80% of fuel purchases on commodity exchanges, a situation he believes warrants regulatory adjustments.

The Rosneft chief also called for introducing a requirement that oil companies allocate at least 30% of their crude oil output to domestic refining in an effort to strengthen fuel supplies within Russia.

In addition, Sechin proposed revising the methodology used to calculate mandatory fuel supply quotas so that it better reflects the needs of filling station operators and government customers.

Another initiative under consideration would require all fuel with lower environmental standards, including Euro-3-grade products, to be sold through commodity exchanges.

By Vafa Guliyeva