No Changes to Fuel Price Cap Mechanism Planned for Now - Novak

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Russian authorities do not plan to make any changes to the fuel damper mechanism, Deputy Prime Minister Alexander Novak said on the sidelines of the Eastern Economic Forum (EEF).

"All necessary changes were adopted during the spring session, currently no changes are planned," Novak was quoted as saying by Interfax.

The damper mechanism in Russia has been in place since 2019. Oil companies receive a damper or subsidy from the government to control domestic fuel prices when export netbacks are high. If exporting is more profitable than supplying the domestic market, the state pays the oil companies; if the opposite is true, the oil companies pay into the budget.

• It was previously reported that in August, oil companies received 197.3 billion rubles from the budget under the fuel damper mechanism.