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Russian government develops ways to subsidize fuel supplies to Far East

According to the Russian Federal Antimonopoly Service, the Far East and Crimea are traditional "painful places" in terms of stable fuel supply

MOSCOW, August 25. / TASS /. The Russian Federal Antimonopoly Service together with Russian Railways, are preparing a draft government decree on subsidizing fuel supplies to the Far East, the mechanism will improve the situation with the supply of the region, said deputy head of the FAS, State Secretary Andrei Tsarikovsky in an interview with TASS on Tuesday.

"We are now working with Energy Minister, the Finance Ministry, the Russian Railways to work out a draft government decree on compensation for tariffs for transporting oil to the Far East. This should improve the situation [with the supply of the region with fuel]," Tsarikovsky said.

According to Tsarikovsky, the Far East and Crimea are traditional "painful places" in terms of stable fuel supply. "But the supply of the peninsula is now stabilizing, since now there is a railway connection. But in the Far East, the situation is complicated purely geographically, there are few factories, and it is expensive to drive there. Therefore, there are difficulties with supplying the region," he explained.

At the beginning of this year, Deputy Prime Minister Yuri Borisov approved the idea of subsidizing the supply of motor fuel to the Far East in the amount of 4,000 rubles per tonne. Now there is a surcharge to the damper, which compensates refineries supplying motor fuel to the Far East in 2,000 rubles per tonne of motor gasoline and diesel fuel. According to the Finance Ministry this measure may cost the budget an additional 6-8 bln rubles ($80-107 mln) per year.

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