The media quoted the 2027-2029 draft budget submitted to the State Duma and related documents as reporting that state subsidies provided by the Russian government to refineries to guarantee domestic fuel supply are expected to drop from an estimated 1.93 trillion rubles this year to 1.18 trillion rubles in 2027. Fuel subsidies for 2028 and 2029 are expected to be 801 billion rubles and 812 billion rubles, respectively. The fuel subsidy is calculated on the basis of the difference between the export price and the base price established by Russian tax law. According to current regulations, if the wholesale price of gasoline in the Russian domestic market does not exceed 20% of the benchmark price and diesel does not exceed 30%, the government is legally obligated to pay the subsidy. Once these standards are exceeded, refineries will not be able to receive state subsidies. According to media reports, the Russian government has also submitted amendments to the Russian Tax Code to raise the benchmark prices used to calculate gasoline, diesel, and aviation kerosene in the state subsidy formula. According to the fuel subsidy formula, without changing other conditions, the increase in the benchmark price may reduce the calculated value of the subsidy per ton of gasoline by about 1,460 rubles and diesel by about 1,330 rubles per ton next year. Airlines' aviation kerosene fuel subsidies may be reduced by about 1,070 rubles per ton.

The media quoted the 2027-2029 draft budget submitted to the State Duma and related documents as reporting that state subsidies provided by the Russian government to refineries to guarantee domestic fuel supply are expected to drop from an estimated 1.93 trillion rubles this year to 1.18 trillion rubles in 2027. Fuel subsidies for 2028 and 2029 are expected to be 801 billion rubles and 812 billion rubles, respectively. The fuel subsidy is calculated on the basis of the difference between the export price and the base price established by Russian tax law. According to current regulations, if the wholesale price of gasoline in the Russian domestic market does not exceed 20% of the benchmark price and diesel does not exceed 30%, the government is legally obligated to pay the subsidy. Once these standards are exceeded, refineries will not be able to receive state subsidies. According to media reports, the Russian government has also submitted amendments to the Russian Tax Code to raise the benchmark prices used to calculate gasoline, diesel, and aviation kerosene in the state subsidy formula. According to the fuel subsidy formula, without changing other conditions, the increase in the benchmark price may reduce the calculated value of the subsidy per ton of gasoline by about 1,460 rubles and diesel by about 1,330 rubles per ton next year. Airlines' aviation kerosene fuel subsidies may be reduced by about 1,070 rubles per ton.