The government is trying to support squeezed refiners through tax refunds
Russian reforms drive refining change
Tax changes to incentivise refinery upgraders are bearing fruit
The Russian government’s policy of offering subsidies to refiners willing to spend big sums on upgrades is translating into investment decisions. And simpler facilities may finally be forced to face market realities and closure. The country’s refining industry was initially geared to churn out a lot of fuel oil. But fiscal incentives over a number of years have aimed to encourage output of higher value products for both domestic and export markets. And this has largely been effective, with major refineries producing lighter fuels for consumption both in Russia and abroad. 8.8mn t/yr – New Russian cracking capacity in 2021 “Over the past ten years the Russian refining sector has gone
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