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The study analyzes the dynamics of petroleum product production in Russia by type and shows the regional structure of production. The price situation is considered, production volume forecasts for 2017 are presented.

In addition to a detailed analysis of import-export operations (volume of supplies by year and month, leading countries of import and export), the study contains information about the main players in the petroleum products market in Russia.

Last updated date: 10/15/2017.

Attention! Research updated to the current date will be provided within 3 business days.

Purpose of the study

Analysis of the Russian petroleum products market.

Research objectives:

• Analyze the volume and structure of petroleum products production in the Russian Federation;
• Analyze the volume and structure of exports and imports of petroleum products in the Russian Federation;
• Collect background information about the main players in the Russian petroleum products market;
• Identify trends and prospects for the development of the Russian petroleum products market.

Research methods:

• Collection and analysis of statistical information (data from the Federal State Statistics Service, EMISS, Federal Customs Service);
• Analysis of financial information from a specialized database of Russian enterprises;
• Collection and analysis of secondary information from printed and electronic business and specialized publications.

Products analyzed in the study:

Production:

• gasoline (by type);
• petroleum bitumen (by type);
• diesel fuel (by type);
• fuel oil (by type);
• reclaimed rubber;
• petroleum coke (by type);
• petroleum oils (by type);
• synthetic acetone;
• kerosene (by type).

Price situation:

• automobile gasoline (by type);
• gas gasoline;
• synthetic acetone;
• petroleum bitumen (by type);
• kerosene (by type);
• gas condensate (by type);
• petroleum and shale coke;
• heating oil;
• petroleum oils (by type);
• reclaimed rubber;
• diesel fuel (by type).

Import and export:

• automobile, motor and other gasolines;
• kerosene and jet fuel, other kerosene;
• lubricating oils and others;
• fuel oil;
• petroleum coke;
• petroleum bitumen;
• other petroleum bitumen, asphalt, bitumen mixtures;
• other oil refining residues.

Description

Project Summary

Socio-economic characteristics of the Russian Federation

Production

International trade

Demographic situation

Employment

Standard of living and income of the population

General characteristics of petroleum products

Classification of petroleum products

Analysis of the Russian petroleum products market

Production of petroleum products in the Russian Federation

Petroleum oils

Oil refining residues

Price situation

Kerosene

Gas condensate

Petroleum and shale coke

Fuel oil

Oils, incl. petroleum oils

Regenerated rubber

Diesel fuel

Analysis of import and export of petroleum products

Import of petroleum products from the Russian Federation

Volume and dynamics of imports

Monthly import dynamics

Structure and dynamics of imports by country

Import structure by regions of import

Export of petroleum products from the Russian Federation

Volume and dynamics of exports

Monthly export dynamics

Structure and dynamics of exports by country

Export structure by regions of export

Key players in the petroleum products market

Gazprom

"LUKOIL"

"Rosneft"

"Surgutneftegaz"

"TRANSNEFT"

"Tatneft"

NOVATEK

ANK Bashneft

"New Stream"

Trends and prospects of the Russian petroleum products market

Applications

Appendix 1. List of tables and diagrams

List of tables

Table 2. Structure of the use of cash income of the population of the Russian Federation, January—December 2016

Table 3. Volume of oil production by the largest Russian oil companies, 2013-2015

Table 4. Volume of oil refining by the largest Russian oil companies, 2013-2015

Table 5. Structure of the volume of imports of automobile, motor and other gasolines by federal districts of import, 2016

Table 6. Structure of the volume of imports of automobile, motor and other gasoline by constituent entities of the Russian Federation, 2015—2016

Table 7. Structure of the volume of imports of kerosene, jet fuel and other kerosene by federal districts of import, 2016

Table 8. Structure of the volume of imports of kerosene, jet fuel and other kerosene by constituent entities of the Russian Federation, 2015-2016

Table 9. Structure of the volume of imports of lubricating oils and other oils by federal districts of import, 2016

Table 10. Structure of the volume of imports of lubricating oils and other oils by constituent entities of the Russian Federation, 2015—2016

Table 11. Structure of the volume of fuel oil imports by constituent entities of the Russian Federation, 2015—2016

Table 12. Structure of the volume of imports of petroleum coke by federal districts of import, 2016

Table 13. Structure of the volume of imports of petroleum coke by constituent entities of the Russian Federation, 2015—2016

Table 14. Structure of the volume of imports of petroleum bitumen by federal districts of import, 2016

Table 15. Structure of the volume of imports of petroleum bitumen by constituent entities of the Russian Federation, 2015—2016

Table 16. Structure of the volume of imports of other petroleum bitumen and asphalt, bitumen mixtures by federal districts of import, 2016

Table 17. Structure of the volume of imports of other petroleum bitumen and asphalt, bitumen mixtures by constituent entities of the Russian Federation, 2015-2016

Table 18. Structure of the volume of imports of other oil refining residues by federal districts of import, 2016

Table 19. Structure of the volume of imports of other oil refining residues by constituent entities of the Russian Federation, 2015–2016

Table 20. Structure of the volume of exports of automobile, motor and other gasoline by federal export districts, 2016

Table 21. Structure of the volume of exports of automobile, motor and other gasoline by constituent entities of the Russian Federation, 2015-2016

Table 22. Structure of the volume of exports of kerosene jet fuel by federal export districts, 2016

Table 23. Structure of the volume of exports of kerosene, jet fuel and other kerosene to constituent entities of the Russian Federation, 2015-2016

Table 24. Structure of the volume of exports of lubricating oils and other oils by federal export districts, 2016

Table 25. Structure of the export volume of lubricating oils and other oils by constituent entities of the Russian Federation, 2015—2016

Table 26. Structure of the volume of fuel oil exports by federal export districts, 2016

Table 27. Structure of the volume of fuel oil exports by constituent entities of the Russian Federation, 2015—2016

Table 28. Structure of the volume of exports of petroleum coke by federal export districts, 2016

Table 29. Structure of the volume of exports of petroleum coke by constituent entities of the Russian Federation, 2015—2016

Table 30. Structure of the volume of exports of petroleum bitumen by federal export districts, 2016

Table 31. Structure of the volume of exports of petroleum bitumen by constituent entities of the Russian Federation, 2015—2016

Table 32. Structure of export volumes of other petroleum bitumen and asphalts, bitumen mixtures by federal export districts, 2016

Table 33. Structure of the export volume of other petroleum bitumen and asphalts, bitumen mixtures by constituent entities of the Russian Federation, 2015-2016

Table 34. Structure of the volume of exports of other oil refining residues by federal export districts, 2016

Table 35. Structure of the volume of exports of other oil refining residues by constituent entities of the Russian Federation, 2015—2016

Table 36. Volumes of oil and gas condensate refining by PJSC Gazprom and its subsidiaries, 2011–2016

Table 37. Production volumes of the main types of gas and oil processing products of PJSC Gazprom and its subsidiaries, 2016

Table 38. Natural gas reserves of NOVATEK, 2010—2016

Table 39. Liquid hydrocarbon reserves of NOVATEK, 2010—2016

Table 40. Total hydrocarbon reserves of NOVATEK, 2010—2015

Table 41. Commercial hydrocarbon production of NOVATEK, 1h2016—1h2017

List of charts

Diagram 1. Dynamics of Russian GDP in current prices, 1q2011—2q2017

Diagram 2. Dynamics of Russia’s foreign trade turnover, 1q2011—2q2017

Diagram 4. Dynamics of the volume of foreign trade with non-CIS countries and CIS countries, 2010 - January-August 2017

Diagram 5. Surplus and deficit of the consolidated and federal budgets of the Russian Federation, 2006—2016

Diagram 6. Dynamics of lending volumes to resident legal entities and individual entrepreneurs in rubles and in foreign currency and precious metals, 2009 - 09/01/2017

Diagram 7. Dynamics of the volume of lending to individuals in rubles and in foreign currency and precious metals, 2009 - 09/01/2017

Diagram 9. Dynamics of money supply (M2) in Russia, 2004 - 09/01/2017

Diagram 10. Resident population of the Russian Federation, 1995 - 09/01/2017

Diagram 11. Distribution of federal districts of Russia by population, 2016

Diagram 13. Number of economically active population of the Russian Federation, 2004—2016

Diagram 14. Dynamics of changes in the number of employed and unemployed population of the Russian Federation, 2004—2016

Diagram 15. Distribution of the number of employed and unemployed population by district of the Russian Federation, September 2017

Diagram 16. Structure of the unemployed (according to ILO methodology) by gender, September 2017

Diagram 17. Dynamics of average nominal wages and the cost of living in Russia, 2q2012—2q2017

Diagram 18. Dynamics of the average quarterly cost of a minimum set of food products and a fixed set of consumer goods and services in Russia, January 2013 - July 2017

Diagram 19. Structure of consumer expenditures of households in the Russian Federation, 2q2017

Diagram 20. Dynamics of production volume of motor gasoline and gas gasoline, 2010—2017E

Diagram 21. Monthly dynamics of motor gasoline production, September 2016 - September 2017

Diagram 22. Monthly dynamics of gas gasoline production volume, November 2015 - December 2016

Diagram 23. Structure of production volume of motor gasoline and gas gasoline by federal districts, 2016

Diagram 24. Dynamics of production volume of automobile gasoline of class 2,3,4,5, 2011—2014

Diagram 25. Dynamics of production volume of automobile gasoline of class 2,3,4,5, 2015—2017E

Diagram 26. Monthly dynamics of the volume of production of automobile gasoline of class 2 and class 3, November 2015 - December 2016

Diagram 27. Monthly dynamics of production volume of automobile gasoline of class 4 and class 5, November 2015 - December 2016

Diagram 28. Monthly dynamics of the production volume of motor gasoline with an octane number of more than 80, but not more than 92; with an octane rating of more than 92, but not more than 95, January - September 2017

Diagram 29. Monthly dynamics of the production volume of motor gasoline with an octane number of more than 95, but not more than 98; with an octane rating of more than 98, January - September 2017

Diagram 30. Structure of the production volume of automotive class 2 and class 3 gasoline by federal districts, 2016

Diagram 31. Structure of production volume of motor gasoline of class 4 and class 5 by federal districts, 2016

Diagram 32. Dynamics of production volume of specialty gasoline and straight-run gasoline, 2010—2017E

Diagram 33. Monthly dynamics of the volume of production of specialty gasolines, November 2015 - December 2016

Diagram 34. Monthly dynamics of the production volume of straight-run gasoline and aviation gasoline, January - September 2017

Diagram 35. Structure of production volume of specialty gasoline and straight-run gasoline by federal districts, 2016

Diagram 36. Dynamics of bitumen production volume, 2015—2017E

Diagram 37. Monthly dynamics of petroleum bitumen production volume, January - September 2017

Diagram 38. Monthly dynamics of the production volume of petroleum road bitumen, September 2016 - September 2017

Diagram 39. Monthly dynamics of the production volume of petroleum construction, roofing, insulating and similar bitumen; oil and shale bitumen, not included in other groups, other, November 2015 - December 2016

Diagram 40. Monthly dynamics of the production volume of petroleum roofing bitumen, petroleum construction bitumen, January - September 2017

Diagram 41. Structure of the production volume of petroleum road bitumen and petroleum construction, roofing, insulating and similar bitumen by federal districts, 2016

Diagram 42. Structure of production volume of oil and shale bitumen, not included in other groups, other by federal districts, 2016

Diagram 43. Dynamics of production volume of diesel fuel class 2, 3, 4, 5, 2011—2014

Diagram 44. Dynamics of production volume of diesel fuel of class 2, 3, 4, 5, 2015—2017E

Diagram 45. Monthly dynamics of production volume of diesel fuel class 2 and class 3, November 2015—December 2016

Diagram 46. Monthly dynamics of the production volume of diesel fuel class 4 and class 5, November 2015 - December 2016

Diagram 47. Structure of production volume of diesel fuel class 2 and class 3 by federal districts, 2016

Diagram 48. Structure of production volume of diesel fuel class 4 and class 5 by federal districts, 2016

Diagram 49. Dynamics of production volume of Arctic diesel fuel and winter diesel fuel, 2010—2017E

Diagram 50. Monthly dynamics of winter and Arctic diesel fuel production, September 2016 - September 2017

Diagram 51. Structure of winter and Arctic diesel fuel production volume by federal districts, 2016

Diagram 52. Dynamics of production volume of summer diesel fuel, other diesel fuel, 2010—2017E

Diagram 53. Monthly dynamics of summer diesel fuel production volume, September 2016 - September 2017

Diagram 54. Monthly dynamics of the production volume of summer diesel fuel and other fuels, November 2015 - December 2016

Diagram 55. Structure of production volume of summer diesel fuel and other fuels by federal districts, 2016

Diagram 56. Dynamics of fuel oil production volume, 2010—2017E

Diagram 57. Monthly dynamics of the volume of production of heating oil and naval fuel oil, September 2016 - September 2017

Diagram 58. Monthly dynamics of other fuel oil production, November 2015 - December 2016

Diagram 59. Structure of the production volume of heating oil and naval fuel oil by federal districts, 2016

Diagram 60. Structure of the production volume of other fuel oil by federal districts, 2016

Diagram 61. Dynamics of reclaimed rubber production volume, 2010—2017E

Diagram 62. Monthly dynamics of reclaimed rubber production volume, September 2016 - September 2017

Diagram 63. Structure of reclaimed rubber production volume by federal districts, 2016

Diagram 64. Dynamics of coke production volume, 2010—2017E

Diagram 65. Monthly dynamics of the production volume of calcined petroleum and shale coke and uncalcined petroleum and shale coke, November 2015 - December 2016

Diagram 66. Monthly dynamics of the production volume of uncalcined petroleum coke, September 2016 - September 2017

Diagram 67. Monthly dynamics of the production volume of calcined petroleum coke, January - September 2017

Diagram 68. Structure of production volume of calcined petroleum and shale coke and uncalcined petroleum and shale coke by federal districts, 2016

Diagram 69. Structure of the production volume of uncalcined petroleum coke by federal districts, 2016

Diagram 70. Dynamics of petroleum oil production volume, 2010—2017E

Diagram 71. Monthly dynamics of the production volume of petroleum lubricating oils and petroleum oils for various purposes, November 2015 - December 2016

Diagram 72. Monthly dynamics of the production volume of petroleum lubricating oils; heavy distillates, not included in other groups, January - September 2017

Diagram 73. Structure of production volume of petroleum lubricating oils and petroleum lubricating oils for various purposes and shale by federal districts, 2016

Diagram 74. Dynamics of production volumes of petroleum coke, petroleum bitumen and other oil refining residues, 2012-2017F

Diagram 75. Monthly dynamics of the volume of production of petroleum coke, petroleum bitumen and other oil refining residues, January - September 2017

Diagram 76. Structure of production volume of petroleum coke, petroleum bitumen and other oil refining residues by federal districts, 2016

Diagram 77. Dynamics of the production volume of synthetic acetone, 2010—2017E

Diagram 78. Dynamics of kerosene production volume, including kerosene jet fuel, and lighting kerosene, 2010—2017F

Diagram 79. Monthly dynamics of the volume of production of technical kerosene and jet fuel of the kerosene type, January - September 2017

Diagram 80. Structure of kerosene production volume, including kerosene jet fuel, by federal districts, 2016

Diagram 81. Structure of lighting kerosene production volume by federal districts, 2016

Diagram 83. Dynamics of average prices of gasoline producers, January—September 2017

Diagram 84. Dynamics of average prices for synthetic acetone producers, November 2015—December 2016

Diagram 86. Dynamics of average prices of bitumen producers, January—September 2017

Diagram 88. Dynamics of average prices of kerosene-type jet fuel producers, January—September 2017

Diagram 89. Dynamics of average producer prices for gas condensate, November 2015—December 2016

Diagram 90. Dynamics of average prices of gas condensate producers, January—September 2017

Diagram 91. Dynamics of average producer prices for petroleum and shale coke, November 2015—December 2016

Diagram 92. Dynamics of average prices for petroleum coke producers, January—September 2017

Diagram 93. Dynamics of average producer prices for heating oil, November 2015—December 2016

Diagram 94. Dynamics of average producer prices for heating oil, January—September 2017

Diagram 95. Dynamics of average producer prices for petroleum oils, November 2015—December 2016

Diagram 96. Dynamics of average producer prices for various types of oils, January—September 2017

Diagram 97. Dynamics of average producer prices for reclaimed rubber, November 2015—December 2016

Diagram 98. Dynamics of average producer prices for reclaimed rubber, January—September 2017

Diagram 99. Dynamics of average producer prices for diesel fuel, November 2015—December 2016

Diagram 100. Dynamics of average producer prices for diesel fuel, January—September 2017

Diagram 101. Dynamics of the volume of imports of gasoline for automobiles, motors and others, 2014 - January-July 2017

Diagram 102. Dynamics of the volume of imports of kerosene, jet fuel and other kerosene, 2014 - January-July 2017

Diagram 107. Dynamics of the volume of imports of other petroleum bitumen and asphalt, bitumen mixtures, 2014 - January-July 2017

Diagram 108. Dynamics of the volume of imports of other oil refining residues, 2014 - January-July 2017

Diagram 109. Monthly dynamics of the volume of imports of gasoline for automobiles, motors and others, March 2016 - July 2017

Chart 110. Monthly dynamics of the volume of imports of kerosene, jet fuel and other kerosene, March 2016 - July 2017

Diagram 111. Monthly dynamics of the volume of imports of lubricating oils and other oils, March 2016 - July 2017

Diagram 115. Monthly dynamics of the volume of imports of other petroleum bitumen and asphalt, bitumen mixtures, March 2016 - July 2017

Chart 116. Monthly dynamics of the volume of imports of other oil refining residues, March 2016 - July 2017

Diagram 117. Top 20 importing countries of automobile, motor and other gasolines, 2016

Diagram 119. Top 20 countries importing lubricating oils and other oils, 2016

Diagram 122. Top 20 importing countries of petroleum bitumen and asphalt, bitumen mixtures, 2016

Diagram 124. Structure of the volume of imports of automobile, motor and other gasoline by federal import districts, 2016

Diagram 125. Structure of the volume of imports of kerosene, jet fuel and other kerosene by federal districts of import, 2016

Diagram 126. Structure of the volume of imports of lubricating oils and other oils by federal districts of import, 2016

Diagram 127. Structure of the volume of imports of petroleum coke by federal districts of import, 2016

Diagram 128. Structure of the volume of imports of petroleum bitumen by federal districts of import, 2016

Diagram 129. Structure of the volume of imports of other petroleum bitumen and asphalt, bitumen mixtures by federal districts of import, 2016

Diagram 130. Structure of the volume of imports of other oil refining residues by federal districts of import, 2016

Diagram 131. Dynamics of the volume of exports of gasoline for automobiles, motors and others, 2014 - January-July 2017

Diagram 132. Dynamics of export volumes of kerosene, jet fuel and other kerosene, 2014 - January-July 2017

Diagram 137. Dynamics of export volumes of other petroleum bitumen and asphalt, bitumen mixtures, 2014 - January-July 2017

Diagram 138. Dynamics of the volume of exports of other oil refining residues, 2014 - January-July 2017

Diagram 139. Monthly dynamics of the volume of exports of automobile, motor and other gasolines, March 2016 - July 2017

Chart 140. Monthly dynamics of the volume of exports of kerosene, jet fuel and other kerosene, March 2016 - July 2017

Chart 141. Monthly dynamics of the volume of exports of other lubricating oils, March 2016 - July 2017

Chart 145. Monthly dynamics of the volume of exports of other petroleum bitumen and asphalts, bitumen mixtures, March 2016 - July 2017

Chart 146. Monthly dynamics of the volume of exports of other oil refining residues, March 2016 - July 2017

Diagram 147. Top 20 countries for exports of automobile, motor and other gasolines from Russia, 2016

Diagram 148. Top 20 countries for exports of kerosene, jet fuel and other kerosene from Russia, 2016

Diagram 149. Top 20 countries for exports of lubricating oils and other oils from Russia, 2016

Diagram 150. Top 20 countries for fuel oil exports from Russia, 2016

Diagram 152. Top 20 countries for export of petroleum bitumen from Russia, 2016

Diagram 153. Top 20 countries exporting other petroleum bitumen and asphalt, bitumen mixtures from Russia, 2016

Diagram 155. Structure of the volume of exports of automobile, motor and other gasoline by federal export districts, 2016

Diagram 156. Structure of export volumes of kerosene, jet fuel and other kerosene by federal export districts, 2016

Diagram 157. Structure of the volume of exports of lubricating oils and other oils by federal export districts, 2016

Diagram 158. Structure of the volume of fuel oil exports by federal export districts, 2016

Diagram 159. Structure of the volume of exports of petroleum coke by federal export districts, 2016

Diagram 160. Structure of the volume of exports of petroleum bitumen by federal export districts, 2016

Diagram 161. Structure of export volumes of other petroleum bitumen and asphalts, bitumen mixtures by federal export districts, 2016

Diagram 162. Structure of the volume of exports of other oil refining residues by federal export districts, 2016

Diagram 164. Dynamics of financial indicators of the Gazprom company, 2013—1q2017

Diagram 165. Distribution of commercial hydrocarbon production by LUKOIL, 2016

Diagram 166. Dynamics of financial indicators of the LUKOIL company, 2012—1h2017

Diagram 167. Dynamics of financial indicators of the Rosneft company, 2012—1h2017

Diagram 168. Dynamics of financial indicators of the company “Surgutneftegas”, 2011—2016

Diagram 169. Dynamics of financial indicators of the Transneft company, 2011—1h2017

Diagram 170. Oil production by Tatneft by largest fields, 2016

Diagram 171. Dynamics of financial indicators of the Tatneft company, 2012—1h2017

Diagram 172. Dynamics of financial indicators of NOVATEK, 2010—1h2017

Diagram 173. Dynamics of financial indicators of JSOC Bashneft, 2011—1h2017

Diagram 174. Dynamics of financial indicators of the New Stream company, 2014—2016

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The scientific direction of studying the structure and organization of markets examines the concentration of market power and its impact on the competitive environment, both in national and regional markets. Representatives of this school developed methods for determining the size of markets and the geographical boundaries of markets, studied a system of factors that determine the structure of the market, which served as the basis for analyzing the competitive environment of industry markets.

The quantitative indicators most often used to assess the structure of the product market are:

1) the number of sellers operating in this market;

2) degree of homogeneity of manufactured products;

3) shares occupied by sellers in a given market;

4) indicators of market concentration.

The number of sellers operating on a product market allows us to determine what type of structure the industry market being studied belongs to: monopoly, oligopoly, monopolistic competition or pure competition. Characterizing the degree of differentiation of products from competitors' products is most important for identifying what type of oligopoly the industry market belongs to: an undifferentiated oligopoly, when goods produced by industry enterprises must meet strictly defined quality standards, or a differentiated oligopoly, most often found in the consumer goods market.

Market share reflects the results of competition and shows the degree of dominance of the enterprise in the market. A large market share of an undifferentiated oligopoly means that the leader firm, due to economies of scale and experience effects, operates in the market at the lowest cost and determines the degree of profitability throughout the industry by controlling the level of prices in the market. Thus, the study of competitors' market shares allows us to identify the distribution of forces in competition.

The petroleum products market belongs to the markets of an undifferentiated oligopoly, since refineries must produce fuel in accordance with existing standards that are uniform for all enterprises. The main commercial products produced at the refinery are the following types of fuel: gasoline, kerosene, diesel fuel, fuel oil. In addition, some domestic refineries produce road bitumen, a wide fraction of hydrocarbons, as well as straight-run gasoline, which are raw materials for petrochemical production.

Currently, the structure of production and sales of motor gasoline at Russian refineries is characterized by the following indicators. (Table 1.2.) Compiled by the author based on statistical collections of information FEC Consult Petrochemistry and oil refining Vol.1-3. for 2006, 2005, 2004, 2003, the KrasnodarEkoneft oil refinery and the Nizhnekamsk oil refinery were not included in this sample, since the range of products of these plants only includes straight-run gasoline, and motor gasoline was not produced during the period under review.

Table.1.3. Sales of motor gasoline by Russian refineries on the domestic market in 2002-2005

Refinery
Moscow Refinery
Slavneft-Yaroslavl Oil Refinery
TNK-BP Ryazan NPK
TNK-BP Saratov Refinery
TNK-Orsknefteorgsintez
LUKOIL-Ukhtaneftepererabotka
LUKOIL-Permnefteorgsintez
Mari Refinery
Bashneftekhim-Ufa Oil Refinery
Bashneftekhim-Novo-Ufimsky Refinery
Bashneftekhim-Ufaneftekhim
Salavatnefteorgsintez
Tatneft - Nizhnekamsk Refinery
YUKOS - Novokuybyshevsky Refinery
YUKOS - Achinsk Refinery
YUKOS - Kuibyshev Refinery
YUKOS-Syzran Refinery
YUKOS-Strezhevskaya Refinery
Khabarovsk Oil Refinery
Sibneft - Omsk Oil Refinery
Rosneft-Tuapse Refinery
Rosneft-Komsomolsk Refinery
Total delivered to Russia

As can be seen from the data presented, the volume of gasoline consumption in Russia fluctuates between 2-5%. The decrease in gasoline consumption in 2003 was, in our opinion, due to a significant increase in fuel prices caused by an increase in the price of crude oil. The slight increase in gasoline consumption in 2004, despite the rapid growth in the number of car owners, is explained, in our opinion, by a reduction in the number of cars with high fuel consumption per unit mileage. The resulting consumption dynamics refutes the opinions of analysts predicting a gasoline shortage, although similar statements are found in the domestic periodicals. So, according to the vice-president of Lukoil L. Fedun: “If oil refining capacities do not develop, then a shortage will arise and Russia will have to import more and more gasoline to meet market demand” Baskaev K. “Gasoline fever” // Oil of Russia No. 3, 2006.-p.76. According to him, in Russia it is necessary to increase gasoline production by 4-5 million tons per year. K. Baskaev predicts a similar shortage of gasoline in 2007-2008, justifying it by the increase in the number of cars. Baskaev K. “Gasoline fever” // Oil of Russia No. 3, 2006.-p.78. However, even in the case of rapid growth in gasoline consumption in the domestic market, the export of motor gasoline is characterized by a significant reserve. According to our calculations, in 2002, gasoline exports amounted to 16%, in 2003, gasoline exports amounted to 19% of total production, and in 2004 -18%. At the same time, the export of petroleum products for most refineries located in the center of Russia is less profitable compared to sales on the domestic market. Therefore, in the event of an increase in gasoline consumption in Russia, oil companies will reduce exports and reorient their sales policy without harming themselves. In addition, one should take into account the fact that the capacity utilization of domestic refineries is on average 70%, i.e. When demand for motor gasoline increases, enterprises have a certain reserve. Therefore, in our opinion, there is no need to commission new oil refining capacities aimed at processing 4-5 million tons. In our opinion, it is advisable not to commission new plants, but to increase the capacity of secondary processes that allow deepening processing and producing larger quantities of high-quality motor gasoline from the same volume of refined oil.

In addition to oil refineries, petroleum products are produced at gas condensate plants of OJSC Gazprom; the total capacity of Gazprom plants is designed to process 8.2 million tons of crude oil. RosBusinessConsultin. Oil refining industry. Industry Review - 2003. Traditionally, Gazprom's oil refineries are considered separately from other Russian refineries. Gazprom plants process gas condensate, a raw material whose qualitative composition is significantly superior to oil. This allows these plants to produce 85% of light petroleum products per ton of processed raw materials, while the average figure for Russian refineries, as we indicated earlier, ranges from 45 to 54%.

Fuel production is also carried out at mini-refineries. Currently, their number is about 40-50 units with a capacity of 20 to 500 thousand tons of processed oil per year. The number of mini-refineries in Russia is growing every year. This is due to several reasons. Firstly, most of the refineries in Russia belong to oil companies that process their own oil. Small oil companies can supply oil for processing mainly to Bashkir refineries, the Moscow Refinery, and Yaroslavnefteorgsintez, around which the relatively free market for petroleum products is concentrated. This shows that independent refining is concentrated in the Volga and Central Federal Districts, while oil production gradually shifted to the Ural and Siberian Federal Districts. This led to a rapid increase in the number of mini-refineries in the regions of Western and Eastern Siberia. The emergence of mini-refineries, on the one hand, is dictated by the market and helps reduce the level of concentration and increase competition between fuel producers. However, the fuels produced at mini-refineries are of low quality. These installations carry out primary distillation of oil, which makes it possible to select a small proportion of valuable light fractions. Further processing of the heavy residue is not carried out at such plants, and raw materials containing a significant proportion of light residues are most often exported abroad, where fractions are separated from it at modern refineries for the production of diesel fuel and kerosene. Due to the lack of recycling processes, the fuel produced at the mini-refinery does not meet modern quality standards; it is high-sulfur diesel fuel and low-octane gasoline. Thus, there is no question of any compliance with modern annually tightening standards for the quality of motor fuels. Accordingly, we believe that such competition from mini-refineries, based on the production of low-quality, cheap fuels, has a negative impact on the innovative activity of large oil refineries. We do not share the positive assessment of the emergence of mini-refineries given by RosBusinessConsulting specialists, since we believe that the introduction of expensive secondary upgrading processes at mini-refineries will be an exception rather than a common practice. Thus, the construction of such refineries costing from $100 million to $650 million in the Sverdlovsk, Novosibirsk, Magadan, and Oryol regions is an illiterate investment decision. In the context of tightening environmental standards for the content of aromatic hydrocarbons and sulfur in motor fuels, most mini-refineries will be forced to close due to the lack of financial resources for the implementation of secondary processes.

To assess the level of competition, the dynamics of the distribution of market shares of enterprises in the Russian gasoline sales market is of interest (Table 1.4.)

Table 1.4. Market share of refineries and vertically integrated oil companies in the motor gasoline market in Russia Calculated by the author based on statistical collections of info TEK Consult Petrochemistry and oil refining Vol.1-3. for 2006,2005,2004, 2003

Refinery
Moscow Refinery
Slavneft-Yaroslavnefteorgsintez
Slavneft-Yaroslavl Oil Refinery
TNK-BP Ryazan NPK
TNK-BP Saratov Refinery
TNK-Orsknefteorgsintez
LUKOIL-Ukhtaneftepererabotka
LUKOIL-Nizhegorodnefteorgsintez
LUKOIL-Permnefteorgsintez
Lukoil - Volgogradneftepererabotka
Mari Refinery
Bashneftekhim-Ufa Oil Refinery
Bashneftekhim-Novo-Ufimsky Refinery
Bashneftekhim-Ufaneftekhim
Salavatnefteorgsintez
Surgutneftegaz-Kirishinefteorgsintez (KINEF)
Tatneft - Nizhnekamsk Refinery
YUKOS - Novokuybyshevsky Refinery
YUKOS - Achinsk Refinery
YUKOS - Angarsk Petrochemical Company
YUKOS - Kuibyshev Refinery
YUKOS-Syzran Refinery
YUKOS-Strezhevskaya Refinery
Khabarovsk Oil Refinery
Krasnodar Oil Refinery - KrasnodarEcoNeft
Afipsky branch of LLC Profit-4 (Krasnodarnefteorgsintez)
Sibneft - Omsk Oil Refinery
Rosneft-Tuapse Refinery
Rosneft-Komsomolsk Refinery

Based on the calculated market shares, we see that the main supplier on the Russian market of motor gasoline is YUKOS (20% in 2004 and 2005), contrary to popular belief that the position of leader in Russian oil refining is occupied by Lukoil. Thus, we can conclude that Lukoil, having the largest volumes of refined oil, exports a significant share of petroleum products.

As can be seen from the presented data, the market shares of most companies in 2003 and 2004 decreased due to the increase in sales of the two largest players in the Russian oil refining market - YUKOS - market growth - 1.6% and Lukoil - market growth - 0.4%. Of interest is the trend of reduction in refining volumes of the third largest competitor (total market share of about 16%), serving mainly independent processors - the Bashneftekhim group of plants, as well as Salavatnefteorgsintez. Thus, we see an annual decline in their market share by 1.5%. This indirectly indicates that in Russia the number of gas stations of large vertically integrated oil companies is growing, while the growth rate of independent gas stations is small. Thus, there is a gradual displacement of independent gas stations and a corresponding strengthening of the positions of the largest Russian vertically integrated oil companies in the retail gasoline market in Russia. This, in our opinion, is the reason for the growth of the market share of TNK, Lukoil, Rosneft and the market share of Gazprom plants - the Omsk and Moscow refineries.

The second most liquid product of domestic oil refining is diesel fuel. The main consumers of diesel fuels on the Russian market are high-capacity road transport, river and sea vessels.

The range of diesel fuels entering the market is quite wide, although, ultimately, all diesel fuels can be combined into two groups: summer diesel fuel and winter diesel fuel. Within each group, diesel fuels with a sulfur content of 0.05 to 0.5% wt are distinguished.

Table 1.5. Requirements for the quality of diesel fuels.

Diesel fuel produced in accordance with GOST 305-82 is the most common in Russia today. The quality of summer diesel fuel according to this standard is indicated in table. 1.5. In addition to diesel fuel that complies with GOST 305-82, in Moscow and other large cities of Russia, special “urban diesel fuel” is used with a maximum sulfur content of no more than 500 ppm weight. There are plans to change the standards for sulfur content in Russian diesel fuels: to reduce its content to 500 or 350 ppm weight, but so far they have not yet been approved by the Russian parliament. As for the countries of the European Union, the European Parliament approved in EU member countries a standard for the sulfur content in diesel fuel from January 1, 2005 of no more than 50 weight ppm and no more than 10 weight ppm since 2008. Already now, thanks to the incentive taxation system, several large European countries are producing environmentally friendly diesel fuels with a sulfur content of no more than 10 ppm weight. according to the 2008 standard. In the US, the Environmental Protection Agency proposed reducing the average sulfur content to 15 ppm by 2006, and by 2008, as in the EU countries, to no more than 10 ppm by weight. This tightening of standards for sulfur content in fuels in developed countries is due to the extremely harmful effects of sulfur dioxide on human health.

In addition to summer and winter diesel fuel, Arctic and export fuels are also distinguished on the Russian market. In Russia, with its more severe climatic conditions and cold winters, the actual ratio of winter and summer grades of diesel fuel produced is lower than in Canada and a number of European countries with a similar climate, for example, the Scandinavian countries. Our total production of Arctic and winter diesel fuels in the total output is 12-13%, theirs is 20-25%. Balukova V.A., Zalishchevsky G.D., Kolesov M.L., Sadchikov I.A., Somov V.E.. Strategic analysis of technical restructuring of an enterprise / Ed. V.E. Somova.-SPb.: SPbGIEU, 2001.-p.150 The needs for winter and Arctic fuel in Russia amount to 35% of the total volume of consumed diesel fuel, i.e. 2.5-3 times higher. Balukova V.A., Zalishchevsky G.D., Kolesov M.L., Sadchikov I.A., Somov V.E.. Strategic analysis of technical restructuring of an enterprise / Ed. V.E. Somova.-SPb.: SPbGIEU, 2001.-p.150 In Russia, the production of winter diesel fuels is associated with high consumption of kerosene fractions, i.e. resources of jet fuels, which are more expensive on the world markets, which determines the low production of this fuel.

In Russia, as can be seen from Fig. 1.2. Diesel fuel consumption decreased annually from 1999 to 2001. According to analysts, this was due to rising prices for this energy resource. However, in 2002, this trend was overcome, and diesel fuel consumption in the period from 2002 to 2005 fluctuated between 3-1.5%. In 2005, there was a sharp 10% increase in diesel fuel consumption. This is due, in our opinion, to the growth in freight turnover of road transport associated with an increase in tariffs for railway transport.

Figure 1.2. Dynamics of diesel fuel consumption in the Russian domestic market

In the Russian Federation, the main consumer of diesel fuel is truck transport, which accounts for about 30% of all supplies. Agriculture and bus transportation also form a large segment of the market (17-19% each). The rest accounts for about 30%; this includes consumption by rail and water transport, as well as diesel fuel consumption by energy companies. The share of diesel fuel consumed by the population is 28%, and the share of gasoline sold on the domestic market to the population is 76%. Thus, we are inclined to argue that the demand for gasoline will be characterized by greater elasticity compared to diesel fuel.

The volumes of diesel fuel supplies by large Russian refineries are presented in Table 1.6.

Table 1.6. Sales of diesel fuel by Russian oil refineries on the domestic market in 2002-2005

Refinery
Moscow Refinery
Slavneft-Yaroslavnefteorgsintez
Slavneft-Yaroslavl Oil Refinery
TNK-BP Ryazan NPK
TNK-BP Saratov Refinery
TNK-Orsknefteorgsintez
LUKOIL-Ukhtaneftepererabotka
LUKOIL-Nizhegorodnefteorgsintez
LUKOIL-Permnefteorgsintez
Lukoil - Volgogradneftepererabotka
Mari Refinery
Bashneftekhim-Ufa Oil Refinery
Bashneftekhim-Novo-Ufimsky Refinery
Bashneftekhim-Ufaneftekhim
Salavatnefteorgsintez
Surgutneftegaz-Kirishinefteorgsintez (KINEF)
Tatneft - Nizhnekamsk Refinery
YUKOS - Novokuybyshevsky Refinery
YUKOS - Achinsk Refinery
YUKOS - Angarsk Petrochemical Company
YUKOS - Kuibyshev Refinery
YUKOS-Syzran Refinery
YUKOS-Strezhevskaya Refinery
Khabarovsk Oil Refinery
Krasnodar Oil Refinery - KrasnodarEcoNeft
Afipsky branch of LLC Profit-4 (Krasnodarnefteorgsintez)
Sibneft - Omsk Oil Refinery
Rosneft-Tuapse Refinery
Rosneft-Komsomolsk Refinery
Total delivered to Russia

As can be seen from Table 1.6, the main suppliers of diesel fuel in Russia are the groups of companies Lukoil, Yukos and Bashneftekhim. In total, Russian refineries produced 50,215.1 thousand tons of diesel fuel in 2002, 52,523.4 thousand tons in 2003, 53,762.9 thousand tons in 2004, and 60,068.7 thousand tons of fuel in 2005. Subtracting the share of supplies to Russia, we see that in 2002 47% of the diesel fuel produced was exported, in 2003 46.3% of the fuel produced, in 2004 48.1%, in 2005 - 49.2% of the fuel produced by Russian refineries . The main export market is North-West Europe (about 60-70%). The second most important is the Mediterranean market (~20-30%) and the third is the Singapore market (~8%). The share of other markets is insignificant.

The leader in diesel fuel production volumes is Lukoil, however, as shown by the results of calculations of domestic market shares shown in Table 1.7, the largest share of the Russian diesel fuel market is still occupied by YUKOS. Over the four years studied, the most significant reduction in market share occurred at Lukoil by 5.5% and, accordingly, the market shares of YUKOS increased by 6.1%, Rosneft and the Moscow Oil Refinery by 3.8%.

Table 1.7. Market share of vertically integrated oil companies in the domestic diesel fuel market

Refinery
Moscow Refinery
Slavneft-Yaroslavnefteorgsintez
Slavneft-Yaroslavl Oil Refinery
TNK-BP Ryazan NPK
TNK-BP Saratov Refinery
TNK-Orsknefteorgsintez
LUKOIL-Ukhtaneftepererabotka
LUKOIL-Nizhegorodnefteorgsintez
LUKOIL-Permnefteorgsintez
Lukoil - Volgogradneftepererabotka
Mari Refinery
Bashneftekhim-Ufa Oil Refinery
Bashneftekhim-Novo-Ufimsky Refinery
Bashneftekhim-Ufaneftekhim
Salavatnefteorgsintez
Surgutneftegaz-Kirishinefteorgsintez (KINEF)
Tatneft - Nizhnekamsk Refinery
YUKOS - Novokuybyshevsky Refinery
YUKOS - Achinsk Refinery
YUKOS - Angarsk Petrochemical Company
YUKOS - Kuibyshev Refinery
YUKOS-Syzran Refinery
YUKOS-Strezhevskaya Refinery
Khabarovsk Oil Refinery
Krasnodar Oil Refinery - KrasnodarEcoNeft
Afipsky branch of LLC Profit-4 (Krasnodarnefteorgsintez)
Sibneft - Omsk Oil Refinery
Rosneft-Tuapse Refinery
Rosneft-Komsomolsk Refinery

The analysis showed that formally there is intense competition between oil refineries and oil companies, and there are no reasons to initiate investigations by the FAS of Russia. However, the growth of innovative activity inherent in the competitive relations of large integrated associations is also not observed. We believe that in this case the antimonopoly authorities avoid correctly defining the geographical boundaries of the product market. According to the procedure for determining the boundaries of the commodity market, Order of the State Committee of the Russian Federation on Antimonopoly Policy and Support of New Economic Structures dated December 20, 1996 No. 169 on approval of the procedure for analyzing and assessing the state of the competitive environment in commodity markets. When determining the geographical boundaries of the market, the following factors are taken into account:

The ability to move demand between territories supposedly included in a single geographic market, that is:

Availability of vehicles to transport the buyer to the seller;

Insignificant* transport costs for moving

buyer to seller, etc.;

Based on the above conditions, we see that it is wrong to consider the single domestic market of petroleum products in Russia as the geographical boundaries of the commodity market, since the motor gasoline market belongs to the consumer retail market. Obviously, only local markets or at least regional markets meet the conditions of insignificant transport costs for moving buyers to sellers. All of the above has led to the need to study the structure of regional sales markets in order to identify real competition between Russian oil refining companies.

Methods of working in the market.

Since the beginning of the 90s, the situation in the petroleum product supply market has been largely determined by the activities of large vertically integrated oil companies (VIOCs).

With the abolition of the USSR State Oil Product Committee, the process of active creation of vertically integrated oil companies began in various regions of the Russian Federation. They included regional oil product supply enterprises with a network of gas stations. The attractiveness of the regions was determined by the location of oil refineries and oil pipelines, as well as the concentration of consumers - industrial enterprises with the ability to pay in real money. In 1996-1999, one of the additional instruments of influence on sales markets were agreements between vertically integrated oil companies and regional administrations. More than half of the constituent entities of the Russian Federation have concluded agreements of this kind. As a result, a situation arose where individual oil companies essentially determined the market situation in individual regions by linking other economic entities to their infrastructure for storing and marketing petroleum products, which could not but affect the state of the wholesale and retail petroleum products market.

In general, the wholesale link of the oil and petroleum products market in the period before 1999 can be characterized as a regional monopoly, since in the corresponding regions, as a rule, only one vertically integrated oil company dominated. Monopolization of the market was carried out through the wholesale link, and in some cases through the use of transport infrastructure. At the same time, competition in the retail network was quite high. However, during the price crisis of 1999, independent sellers of petroleum products were forced by oil companies into conditions of commodity shortages by requiring them to purchase only large quantities of products on a full prepayment basis. As a result, independent sellers were forced to buy products at inflated prices, which was reflected in the price level in retail trade. In turn, oil product supply enterprises were guided by market prices thus established. In many cases, there were interruptions in the work of independent sellers, and the share of vertically integrated oil companies in retail trade increased significantly. Accordingly, concentration indicators on the wholesale market also changed in favor of vertically integrated oil companies. The sale of petroleum products within vertically integrated oil companies was often organized through chains of their own intermediary companies, which created conditions for increasing wholesale and retail prices, including by creating an artificial shortage, regardless of the real state of the commodity market. Another important reason for disruptions in the supply of petroleum products to the domestic market during the period under review was the rise in world oil prices, which stimulated oil companies to increase export supplies to the detriment of the domestic market.

Since 2000, operating conditions in the wholesale and retail petroleum products markets have changed. A trend is steadily emerging towards the creation of oligopolistic markets, where the main market share is occupied by two or three oil companies, each of which may not fall under the formal signs of dominance. However, it is obvious that such “friendly” competition has a negative impact on independent competitors and consumers.

It should also be noted that vertically integrated oil companies, of course, remain the dominant economic entities in the market for the provision of services for the storage of petroleum products and oil refining. It is noted that it is difficult for business entities to access oil storage facilities, and small and medium-sized enterprises in the oil sector do not have access to the capacities of oil refineries included in the structure of vertically integrated oil companies.

The products offered by competing companies to customers are generally homogeneous, so the main success factors are timely delivery and price.

Main characteristics of the industry.

The total number of enterprises in the oil and petrochemical industries exceeds 8 thousand (of which about 800 are large and medium-sized).

However, despite the significant number of companies engaged in the oil sector, a distinctive characteristic of the industry is the high concentration of business. The weighted average concentration ratio, reflecting the share of the 4 largest companies in sub-sectors (taking into account the “contribution” to the total production volume in the industry) is 52.82%.

Enterprises in the oil and petrochemical industries have powerful production resources. Enterprises in the industry are widely represented in the Expert-200 ranking of the two hundred largest industrial enterprises in Russia.

Urgent problems in the development of oil refining are high transport tariffs and disparity in prices for petroleum products in the domestic and foreign markets. A serious obstacle to improving market competition is the low level of access of small and medium-sized oil refineries to oil refining services at large enterprises, usually part of vertically integrated structures. Oil refineries do not accept small volumes of oil from small companies under a tolling scheme, and to ensure the profitability of oil refining, long-term supplies of at least 50 thousand tons of oil per month are required. Such results can only be achieved if the volumes of oil produced are consolidated by several business entities. However, according to the Ministry of Energy of the Russian Federation, the consolidation of small volumes of oil is complicated by the existing pattern of cargo flows, which does not allow planned deliveries of oil to oil refineries in the direction that coincides with the pattern of technological cargo flows. To solve this problem, it is necessary to replace the oil of some shippers with the oil of others, or to consolidate oil in order to be able to supply it in one direction. According to the Ministry of Aviation Administration of the Russian Federation, oil consolidation can be carried out on the trading floors of exchanges during the trading process, which will support independent market participants.

In general, the wholesale link of the oil and petroleum products market is typified as a regional monopoly, since in the relevant regions of the country, as a rule, one of the vertically integrated oil companies undoubtedly occupies a dominant position. Monopolization of the market is carried out through the wholesale link (oil product storage facilities), as well as in some cases through the transport infrastructure.

At the same time, a very small number of oil companies can successfully compete in world markets due to the insignificant volumes of economic turnover on a global scale.

The oil segment of the oil industry is far behind the world giants in oil production. All domestic manufacturers work on old, worn-out equipment built in Soviet times. Today, the Russian Federation practically does not produce synthetic base oils that serve as the basis for the production of synthetic motor oils.

In the Russian Federation, about 2.5-2.6 million tons of oils are produced annually. Almost the entire volume is mineral oils, which are produced by 12 refineries that include oil production facilities, as well as several oil factories. Almost 20% of products are exported, and base oils are mainly exported. Of the entire variety of lubricants, about 45% of the produced volumes are motor oils, and taking into account imports, their share in total consumption is approximately 55-60%. The dynamics of changes in oil production volumes in Russia are given in table No. 1.

Table No. 1. Production of lubricating oils in the Russian Federation, million tons

year 2000	year 2001	2002	2003	2004 (forecast)
2481,2	2572,8	2518,2	2530	2606,5

A more significant increase in physical volumes of lubricating oil production in Russia, according to experts, is unlikely. Modern machines and mechanisms use oil more economically, which somewhat restrains the growth of their production.

No more than 12-14% of the total Russian volume of oil consumption is imported into Russia, but imports consist of high-quality varieties of motor oils - mineral, semi-synthetic and synthetic, with which domestic products do not even compete.

“Ordinary” grades of motor oils (about 90% of the total volume of Russian production), as a rule, are sold in bulk and have a fairly wide range of regular consumers - large enterprises, fleets with heavy vehicles, the Ministry of Defense, agriculture, etc.

The structure of oil production in the Russian Federation is given in diagram No. 1.

Diagram No. 1. Types of oils produced in Russia.

Competitive environment.

The largest oil producer is LUKOIL, which accounts for about 42% of all domestic production.

Until 2001, TNK-BP, YUKOS, Bashneftekhimzavody occupied approximately equal segments in oil production at 12-13% each. In 2002, TNK-BP, after acquiring Orsknefteorgsintez and almost doubling oil production volumes at this refinery, increased its market share to 18%. And in the near future, after the division of YUKOS assets with Sibneft, it may further increase its niche. In turn, Bashneftekhimzavozdy almost halved the volume of oil production and, at the end of 2002, occupied only 7% of the market.

The “oil” areas of all oil refineries, without exception, were built back in Soviet times and the vast majority are morally and physically outdated. The production potential of Russian refineries is 99% represented by oil extraction processes (phenol, furfural, etc.), therefore, such important characteristics of consumer properties as the viscosity index of oils and their sulfur content depend critically on the composition of the oil supplied to the plant .

The raw material for most refineries is Urals pipeline mixture, and therefore, according to experts, base oils have, in essence, a common satisfactory quality for all. Until the summer of 2003, two Lukoil plants, Permnefteorgsintez and Volgogradneftepererabotka, stood somewhat apart, “sitting” on the Kholmogory – Klin oil pipeline, which previously transported light, low-sulfur Siberian oil. According to LUKOIL, this allowed the company to obtain oils 5-7% cheaper compared to similar types of motor oils (primarily diesel) from most other companies. After the Urals mixture was transported through the Kholmogory-Klin oil pipeline, only the products of the Omsk Refinery (Sibneft), which still operates on light Siberian oils, retained their advantage.

The competitiveness of Russian petroleum products on the European market is low. The bulk of petroleum products produced at Russian enterprises does not meet European standards. Mainly exported are diesel fuels of low (by European standards) quality in terms of sulfur content (0.2 and higher), heating oil, base oils, straight-run gasoline, vacuum gas oil and other relatively cheap products.

Most domestic companies associate the prospects for the development of oil production with improving the quality of their products. Improving the quality of oils, in turn, has two directions, and both represent practically unplowed ground for Russian manufacturers.

The first direction is improving the quality of base oil through the introduction of hydrogenation processes at refineries and, in particular, processes of catalytic hydrocracking and hydroisomerization of vacuum distillation products. Oil after hydrocracking contains much more isoparaffins and does not have harmful impurities in the form of sulfur and nitrogen, and most importantly, its quality no longer depends on the composition of crude oil.

The second direction is the creation of our own modern facilities for the production of additives, the cost of which makes up the bulk of the price of the oil (up to 60-70%), although the share in the volume of the finished product does not exceed 15% (usually 5–12%). Russian factories produce about 90 thousand tons of additives per year, with market demand at 110-120 thousand tons. At the same time, additives for high-quality oils are practically not produced in Russia; domestic additives are suitable only for low- and medium-quality oils. The exception is the Novokuybyshevsk Oils and Additives Plant (YUKOS), which has mastered the domestic additive Dersol-300.

Russian companies are making attempts to establish licensed additive production at their facilities; in particular, LUKOIL is negotiating with Chevron Oronite to create a joint venture in Volgograd. However, the prospects of this project are assessed by experts as low.

Against the backdrop of solving the problems of improving the quality of oils, many refineries are setting up or have already set up the production of packaged, highly profitable products, which are sold under the brand of the manufacturing company.

According to LUKOIL, oils account for 4% of all petroleum products produced by the company, while in value terms they account for 8.5% of revenue. At the same time, packaged oils “with a brand,” as the company said, are 2.5-3 times more profitable to sell than in bulk.

Today in Russia, among domestic producers, only LUKOIL, TNK-BP and YUKOS have acquired their own brand. So far, LUKOIL is in the lead, estimating that its share in the all-Russian market of packaged high-quality oils is 50%.

The oil production development program developed by LUKOIL envisages increasing annual oil production to 1.3 million tons by 2005 and increasing the market share of its packaged oils to 60%.

This program also provides for the production, packaging and sale of oils in near and far abroad countries using base oils. Which are produced by Lukoil refineries in Russia. First of all, attention is paid to Ukraine with its very capacious market. The company has been negotiating for more than a year to create a joint venture with Berdyansk OJSC Azov Oils and Lubricants (Azmol). LUKOIL is ready to invest up to $4 million in the modernization of oil production at Azmol so that, based on base Lukoil oils, it can produce up to 65 thousand tons of bulk oils and 2.5 thousand tons of packaged oils per year, which will amount to 16 -18% of the Ukrainian market. In addition, LUKOIL’s plans include creating a similar production facility in Bulgaria.

LUKOIL was also the first to achieve recognition of compliance of its products with API and ACEA quality standards, spending about $1 million on international recognition. As a result, Lukoil oils received approval from Volkswagen AG, DaimlerCrysler, BMW Group, and Porsche AG.

TNK, having created a joint venture with Texaco on the basis of the Ryazan Oil Refinery in 2000, has during this time increased the volume of sales of oils under the TNK brand in small plastic containers by 7 times, in barrels, which are also “branded” - by 4 times. This helped Ryazan products occupy 10% of the all-Russian motor oil market and 15% of the Moscow market, where competition from imported products is strongest. The company plans to increase its share in the Russian oil market to 30%.

YUKOS packaged oils - the U-Tech brand - appeared on the market only in 2002, but already now the segment that YUKOS occupies in the packaged oil market is about 10%. Over the course of 5 years, the company intends to invest $50 million in improving oil technologies at the Angarsk oil and gas industry in order to bring product quality to European standards.

The remaining share of the packaged oils market – about 30% – comes from imported products.

Counterfeits are a headache for brand manufacturers. Moreover, the share of counterfeits in certain regions of the Russian Federation reaches 40%. As a result, companies have to improve not only the quality of oils, but also the packaging and protection of their products. Almost all “oil” refineries have built or are building automatic lines for the production of cans and barrels made of plastic, and their forms are very difficult to reproduce in artisanal conditions. Each “packaging” is supplied with a label with several degrees of protection.

A rather “problem area” in the Russian oil market is the segment of synthetic oils. Basic synthetic oil is a chemical production product that is distantly related to oil refining: in its production, in the vast majority of cases, polyalphaolefins are used. The raw materials for which are decenes and unsaturated linear hydrocarbons - relatives of ethylene.

The annual demand of the Russian market for synthetic and semi-synthetic oils is estimated at 75 thousand tons, of which about 40 thousand tons are for the needs of the Ministry of Defense. Today, the only domestic producer of a synthetic “base” is the Volgograd Oil Refinery, where there is a small installation with a capacity of only 20 thousand tons per year, which is completely taken over by the military.

The factories of LUKOIL, TNK-BP and YUKOS produce synthetic motor oils, but they are all made from imported “base”.

Currently, Tatneft is establishing the production of its own synthetic base oils in Russia for the production of consumer products. Together with Nizhnekamskneftekhim, the company created Tatneft-Nizhnekamskneftekhimoil LLC (74% owned by Tatneft, 26% owned by Nizhnekamskneftekhim), which controls a range of activities for the production of synthetic oils. The capacity of the first stage will be 10 thousand tons of synthetic base oils per year. In total, it is planned to produce 60 thousand tons of synthetic and semi-synthetic oils per year. Raw materials for the Nizhnekamsk synthetic oil plant will be supplied from the oligomers plant, which is part of Nizhnekamskneftekhim.

The estimated cost of Nizhnekamsk synthetic base will be $1.7-1.8 thousand per ton, versus $2.2-2.3 thousand per ton of imported base. With such a margin of price safety, Nizhnekamsk “synthetics” are capable of occupying a noticeable niche among the “oil” giants on the Russian market.

The dynamics of changes in the lubricating oil market in Russia are given in table No. 2..

Table No. 2 . Dynamics of the lubricating oil market.

Market prospects in 2004. Trends and changes in market structure.

An important factor influencing the state of the domestic market of the Russian Federation , as statistics of market observations over many years have shown, a factor has become that, for convenience, can be called: “the level of world prices for crude oil.” Weighted average values ​​are calculated through oil exchanges, and the high price of oil “pushes” up the prices of its refined products, primarily fuel oil and diesel fuel (half of the produced volume of which is exported from the Russian Federation). The system works as follows: with a sharp increase in prices for petroleum products and oil, Russian companies strive to export more oil and petroleum products, while the needs of the domestic market are not taken into account. As a result, the price of oil rises on the domestic market (there is less of it). Then expensive oil is “brought in” for processing, while the output petroleum products also become more expensive, the exported volumes of petroleum products expose the market and the situation leads to rising prices. When analyzing fluctuations in world oil prices over the year, government decisions to regulate customs duties and the dynamics of domestic market price indices, an obvious correlation between them is revealed. Moreover, the time lag for a sharp rise or fall in oil prices usually ranges from 10 to 14 days.

The domestic market for petroleum products is not growing at a rapid pace. The only good thing is the increase in the fleet of private cars, which leads to growth in the retail sales of fuels and lubricants in large cities.

In 2003, Russia took first place in oil production, overtaking Saudi Arabia. The complex policy of maneuvering that the government pursued over the past year made it possible to exert a significant influence on the global oil market. Ideological support for OPEC and reluctance to join it, promises of stable oil supplies to the USA and China, development of Caspian and shelf projects - these are the main “cards” in the world oil game that Russia used.

In 2004, according to the Deputy Minister of Energy of the Russian Federation Oleg Gordeev, the expected oil production in Russia will be 430-450 million tons. Now the increase in oil production is approximately 10-10.5%. Not a single Russian company is currently reducing production. Every quarter the pipeline system increases the pumping of oil for export. Russia is increasing its export volumes. At the same time, inventories in the Transneft system and other oil trunk pipeline systems are at the optimal level.

World oil prices should remain high throughout 2004 - Wall Street Journal. The view that oil prices will inevitably fall is based on forecasts of increased supplies from Iraq. However, even if the Iraqis finally stop blowing up oil pipelines, exports from this country in 2004 will not exceed only 2 million barrels/day compared to the current 1.6 million barrels/day. At the same time, the general recovery of the world economy and China’s growing appetites will inevitably lead to a surge in demand for “black gold” and will not allow oil prices to fall too low. Of course, current oil prices will not be able to remain stable for long, but even if they fall, they will most likely remain at a high level throughout 2004. According to forecasts by the Ministry of Finance of the Russian Federation, in 2004 the price of oil will be $22.5 per barrel.

Throughout 2003, the domestic petroleum products market was in a fever, its configuration was changing. There are fewer and fewer independent market operators left, both in the large wholesale and retail segments. Large oil companies not only compete fiercely with each other in regional markets, but are also diligently ousting independent operators. It is extremely difficult for the latter to compete on the price of the product with the regional representative office (or branch) of the oil company. Thus, in particular in the Sverdlovsk region, independent market operators purchase products from Bashkir factories, and the oil companies LUKOIL and Sibneft, competing with each other in this market, set the price at the region’s oil depots in such a way that other operators simply “do not pass” prices. Over the past few years, independent operators have actively used the deferred payment mechanism, but there are serious concerns among experts about the gradual “winding down” of this practice.

Not only small and medium-sized operators are being squeezed out of the market, but also owners of gas stations or small gas station networks. At the same time, the number of gas stations in the country is increasing due to the introduction of new gas stations of large oil companies (federal brands) or large local operators (regional brands or franchising of federal brands).

For the Russian oil industry, the shift in emphasis from oil production and refining to independent sales of petroleum products is a relatively new phenomenon. The economic rationale for this process has long been clear: maximum profit can be obtained by trading petroleum products. Moreover, this concept of market marketing places the production and sale of products, as well as the provision of services, in direct dependence on consumer requests, detailed market research, and consumer assessments of assortment and quality.

In 2004, the redistribution of regional markets by oil companies will continue. However, despite unequal competitive opportunities, small and medium-sized oil companies have a chance to survive and gain a foothold in the market by building vertically integrated structures that include the most profitable areas of working with oil products and conquering niches in certain regions that have not yet been exploited by large oil companies , as well as through the use of franchise operating schemes.

It is important to take into account that the dynamically developing petroleum products trading market is characterized by high competition, and in this struggle only those companies that use advanced technologies and constantly analyze the state of the external environment and the efficiency of their own business have a chance to win.

Tatyana Sukhova, director

Center for Marketing Research ASPECTUM.

When preparing the material, we used data from the Ministry of Energy of the Russian Federation, InfoTEK, and calculationsMarketing Research CenterASPECTUM, materials from open media sources.

The Russian oil industry plays an important role both in the economic development of the country and in the world market. This is a multi-industry complex that carries out work throughout Russia on the search and exploration of new oil fields, construction of wells, production and trunk transportation of oil and associated gas, their processing and sale, production and repair of oil equipment.

Russia has significant oil resources - approximately 13% of all world oil reserves. Their estimated cost is 4.5 trillion. US dollars.

Oil is one of Russia's main export commodities. The rapid growth of oil production and large-scale oil exports for many years actually ensured the functioning and development of inefficient sectors of the Russian economy. However, already in the second half of the 1980s the situation began to change noticeably. The maximum oil production in Russia (570 million tons) was reached in 1988. In subsequent years, a rapid decline in oil production was observed. In 2000, oil production amounted to just over 300 million tons. The main reasons for the decline in oil production in Russia are: development of old fields, primarily within the Volga-Ural oil and gas province; lag in the implementation of new production capacities; technical backwardness of the industry; severance of economic ties with the CIS countries, where the main enterprises producing oil equipment remained; lack of investment, while mining and geological conditions for production have become sharply complicated. Low domestic oil prices do not ensure self-financing of oil producing enterprises.

Currently, Russia ranks third in the world in oil production after Saudi Arabia and the United States.

The current state of the Russian oil industry is characterized by a reduction in the growth of industrial oil reserves, a decrease in the quality and rate of their introduction; reduction in the volume of exploration and production drilling and an increase in the number of inactive wells; a widespread transition to mechanized production with a sharp reduction in flowing wells; the absence of a significant reserve of large deposits; the need for involvement in the industrial exploitation of deposits; located in undeveloped and hard-to-reach areas; the progressive technical and technological backwardness of the industry; insufficient attention to issues of social development and ecology.

The oil industry is concentrated mainly within five oil and gas provinces of Russia: West Siberian (which accounts for about 70% of all oil production in Russia), Volga-Ural (about 25%), Timan-Pechora (more than 6%), North-Pechora (more than 6%), Caucasian, Far Eastern.

The main oil-producing region is Western Siberia, where the largest oil industry base in the country has been created in the Tyumen and Tomsk regions, which stands out from the general background in terms of the scale and efficiency of production. The country's largest territorial production complex is being created here, based on unique oil and gas deposits.

Promising areas for oil production in Russia are the shelves of the Barents and Okhotsk seas. Signs of oil potential are present in a vast territory of the North, Eastern Siberia, and the Far East.

The country's oil industry has entered a qualitatively new, more complex stage of development, when there is a need to sharply increase the volume of prospecting and exploration work, especially in Eastern Siberia, in zones deep under the gas fields of Western Siberia, in shelf zones of the seas, to form the necessary production and technical bases. Oil production has begun in the Arctic on the shelf near Kolguev Island (Peschanoozerskoye field).

The promotion of oil production to the eastern regions of the country and to the north of the European part gives particular importance to the problem of expanding the network and increasing the capacity of pipeline transport.

The Russian Federation has created an extensive system of oil pipelines transporting oil to other regions of the country, CIS countries and Western Europe. It supplies more than 95% of all produced oil with an average pumping distance of 2,300 km. The largest: Ust-Balyk - Kurgan - Almetyevsk, Nizhnevartovsk - Samara; Samara - Lisichansk - Kremenchug - Kherson - Odessa; Surgut - Novopolotsk; Shaim - Tyumen; Ust-Balyk - Omsk - Anzhero-Sudzhensk; Ust-Balyk - Omsk - Pavlodar - Chimkent; Aleksandrovskoye - Anzhero-Sudzhensk; Tuymazy - Omsk - Novosibirsk - Krasnoyarsk - Angarsk; Almetyevsk - Samara - Bryansk - Mozyr - Poland, Germany, Hungary, Czech Republic, Slovakia; Almetyevsk - Nizhny Novgorod - Ryazan - Moscow with a branch from Nizhny Novgorod to Yaroslavl - Kirishi, etc.

In the coming years, a pipeline will be laid in Russia (the Volga region and the North Caucasus) to transport oil from the Tengiz field (Kazakhstan) to Novorossiysk. Its construction is carried out by the Caspian Pipeline Consortium (CPC) with the participation of Kazakhstan, Oman and Russia.

According to information from the Izvestia newspaper dated 02/09/04, the shares of the main producers of gasoline and diesel fuel in the Russian Federation were distributed as follows (Table 2):

table 2

Major producers of petroleum products in the Russian Federation in 2003

The table shows that this market today, in terms of the number of operators, is a market of monopolistic competition. However, the fact that 5 companies produce 73.7% of gasoline and 70.7% of diesel fuel gives reason to consider the industry as oligopolistic. This is due to high barriers to entry into the industry. To organize a business in the field of oil production and oil refining, very large capital investments are required. For the wholesale sale of petroleum products, these costs are already much lower. For retail trade with gas stations, they are minimal and quite comparable to opening a private retail store for any type of goods. Thus, the number of market counterparties will increase as they move up this hierarchical ladder (which, however, is true for any sector of the economy). However, this is not quite the case in the oil industry. The main direction of the oil complex reform that began after the collapse of the USSR in 1991 was the creation of vertically integrated oil companies operating on the principle “from well to gas station.” NK YUKOS and LUKOIL are typical representatives of such vertically integrated structures. Accordingly, owning huge networks of gas stations - about several thousand, they have significant market power and can have a great influence on the formation of the retail sales market for fuel and lubricants. It should be pointed out here that foreign oil companies at one time (about 30-40) years ago also went through this stage in their formation and now for the most part represent just such structures.

However, today the situation with NK YUKOS is extraordinary. Thus, according to an official statement dated May 28, 2004, NK YUKOS warned its creditors and shareholders about the possible bankruptcy of the company before the end of 2004. This statement was caused by the recent decision of the Moscow Arbitration Court to collect a debt from YUKOS in the amount of over 99.3 billion rubles. According to analysts, technically, the bankruptcy that the company is talking about is quite real. In addition to tax claims for 2000, the state can significantly increase the amount of the claim by bringing claims against Yukos for a later period. YUKOS intends to challenge the court's decision on the payment of taxes in higher courts, but in the meantime they are waiting for the seizure of assets to be lifted, so that if the appeal is rejected, they can sell part of them to satisfy the tax authorities' claim.

In mid-April, based on the results of a repeat tax audit of OJSC NK YUKOS for 2000, Deputy Minister for Taxes and Duties of the Russian Federation Igor Golikov made a decision providing for the accrual of taxes, penalties and fines totaling 99.38 billion rubles. In parallel, the Federal Tax Service (FTS, formerly the Ministry of Taxes and Duties) of the Russian Federation filed a claim with the Moscow Arbitration Court to recover from YUKOS the amounts stipulated by the decision and with a petition to secure the claim. All attempts by YUKOS to challenge the claims of the Federal Tax Service have so far led to nothing. In April, in support of the claim of the Federal Tax Service of the Russian Federation against NK YUKOS, the Moscow Arbitration Court decided to prohibit the company from alienating any property, including shares. The Moscow Arbitration Court upheld the claim of the Federal Tax Service against NK YUKOS and ordered the company to pay 99.38 billion rubles to the tax authorities.

Analysts believe that the company's bankruptcy by the end of this year is technically likely. In this case, we are talking not only about the tax claims of the Federal Tax Service based on the results of the audit for 2000, but also about possible new tax claims against the company. The state can at any time significantly increase the amount of the claim by putting forward claims against Yukos for 2001 as well. According to experts, the state can at any time increase the amount of the claim by approximately another $3 billion.

The company itself stated that it intends to continue legal proceedings. In the meantime, the company is waiting for the authorities’ decision to lift the seizure of its assets and, if the appeal on the merits of the MTS claims is rejected, it is ready to sell part of its liquid assets to satisfy the tax authorities’ claim. According to analysts, the company hopes that the Tax Ministry can meet Yukos halfway and accept its plan to pay tax claims in installments.

For the period 1999 - 2003 The Russian petroleum products market experienced a significant increase in gasoline prices. This was caused by global trends in rising oil prices. The higher level of commercial profitability of export operations with petroleum products relative to their sales on the domestic market (taking into account late payments for delivered products and non-payments) in every possible way pushed oil companies to increase export supplies of petroleum products. Already by the beginning of the summer of 2002, the share of exports of motor gasoline to the total production volume increased abruptly from 14% to more than 41%, diesel fuel - from 52% to 61%, and fuel oil - from 45% to 81%.

In 2002, according to experts from the Russian Fuel Union, the deficit in the supply of petroleum products to the Russian domestic market amounted to about 1 million tons.

During the 5 months of the gasoline crisis in 2002, gasoline prices rose by an average of a third. In 1999, the price jump was much more powerful - fuel rose in price by 2.4 times. However, crude oil in 1999 rose in price even more by 4.9 times. At the beginning of 2003, the price of gasoline stabilized somewhat. This is, firstly, due to the fact that winter and early spring have a minimum calendar demand for fuel from agriculture and summer residents. By the way, the gasoline crisis of 1999. also ended in November. Secondly, the year-and-a-half trend of steady growth in world prices for oil and petroleum products seems to have ended. Finally, the dollar price of gasoline on the domestic market is almost equal to world prices for it.

In October 2000, specialists from LUKOIL-Permnefteorgsintez (a subsidiary of the oil company LUKOIL), when developing a comprehensive program (concept), development for the next ten years, analyzed trends characteristic of today's petroleum products market and forecast for the future.

According to LUKOIL-Permnefteorgsintez specialists, fundamental changes await, first of all, the motor fuel market, not only quantitatively and in terms of assortment, but also in terms of quality characteristics. Thus, gasoline consumption will increase by about one and a half times. If in fact in 1998 in Russia the demand for motor gasoline of various brands was about 24 million tons, then at the turn of 2005 the volume of consumption is estimated at 32 million tons, and by 2010 - more than 37 million tons. At the same time, there will be a significant increase in demand specifically for high-octane grades of gasoline, and the consumption of low-octane gasoline - AI-80 will be significantly reduced.

The consumption of aviation kerosene is expected to increase by 40 percent - from 31 to 52 million tons. The demand for lubricating oils will remain almost at the same level - 1.2-2 million tons, but there will be major structural changes towards high-quality brands of oils with improved performance properties.

Low world oil prices have not become an obstacle to production growth in the Russian Federation. In 2016, oil and condensate production increased by 2.6% – to 547.5 million tons. Oil exports to non-CIS countries increased by 5.1% compared to 2015. The volume of oil production and exports in 2017 will be affected by the participation of the Russian Federation in the agreement between oil producers to limit production volumes.

547.5 million tons oil and condensate production in 2016

Dynamics of oil production, export and refining Processing = extraction – export.(million tons) Source: Ministry of Energy of Russia

Export of petroleum products (million tons) Source: Bank of Russia, Federal Customs Service of Russia

The volume of primary oil refining in the Russian Federation at the end of 2016 decreased by 1.1% against the background of an increase in the depth of refining. At the end of the year, the production of gasoline and diesel fuel increased, while the production of fuel oil decreased significantly. The dynamics of Russian processing in 2017, in addition to world market prices, will be influenced by changes in tax and customs tariff legislation. On January 1, 2017, the final configuration of the large tax maneuver initiated in 2014 came into force. The rate of export duty on crude oil was reduced based on the application of a marginal cut-off rate of 30%, which was offset by an increase in the mineral extraction tax (MET). ). The rates of export duties on light petroleum products were reduced to 30% of export duties on oil; export duty rates on dark petroleum products have been increased to 100% of the duty on oil. New parameters of the tax system will contribute to a further reduction in fuel oil production and an increase in the depth of processing.

Consumption and export of main petroleum products in 2016 (million tons) Source: Ministry of Energy of Russia

Opportunities for demand recovery

The situation in the economy of the Russian Federation in 2016 showed signs of stabilization. GDP dynamics in the second half of the year reached near-zero levels; At the end of the year, the decline in GDP was 0.2%. At the same time, industrial production increased by 1.1%, largely due to the extractive sectors of the industry. There was also an improvement in car sales, the volume of which stabilized by the end of the year. However, weak dynamics in consumer spending and retail trade continued to limit domestic consumption of motor fuel.

Dynamics of consumption and export of petroleum products (million tons) Source: Ministry of Energy of Russia

Structure of freight turnover by mode of transport (billion tkm) Source: Rosstat

Structure of passenger turnover by main types of public transport (billion passenger-km) Source: Rosstat

New car sales (million units) Source: The Association of European Businesses in the Russian Federation

Review of key changes in tax and customs tariff legislation of the Russian Federation

In 2016, the Government of the Russian Federation continued the gradual adjustment of the taxation system of the oil industry as part of the so-called big tax maneuver, approved by Federal Law of the Russian Federation of November 24, 2014 No. 366-FZ. The goal of implementing a large tax maneuver is based on reducing the fiscal role of export duties while simultaneously changing the rates of other key taxes to balance the interests of the budget, the oil industry and domestic market consumers.

Mineral extraction tax

In 2016, as part of planned changes in the level of tax burden on the oil production sector, mineral extraction tax rates on oil and gas condensate were increased compared to the same indicators in 2015 due to an increase in:

• base rate of mineral extraction tax on oil (from 766 to 857 rubles/t);
• correction factor (Kkm) when calculating the mineral extraction tax rate on condensate (from 4.4 to 5.5).

In order to reduce the deficit of the federal budget of the Russian Federation, Federal Law No. 401-FZ of November 30, 2016 introduced changes to the procedure for calculating the mineral extraction tax on oil by including in the formula for calculating the tax rate an additional coefficient Kk equal to 306 for 2017, 357 for 2018 . and 428 for 2019

Export duty

The Government of the Russian Federation decided to “freeze” the oil export duty rate for 1 year at the 2015 level (based on the application of a maximum cut-off rate of 42%) and abandon the planned reduction in 2016 to 36%. These changes were made to the customs tariff legislation by the Federal Law of the Russian Federation of November 28, 2015 No. 324-FZ.

In 2016, export duty rates on light petroleum products (from 48 to 40%) and motor gasoline (from 78 to 61%) also continued to be reduced. In relation to dark petroleum products, the export duty rate, on the contrary, increased to 82% of the export duty rate on oil.

Excise taxes

Since 2016, the list of excisable goods has been expanded due to the taxation of operations for the production and sale of middle distillates. The main goal of the innovation is to combat diesel fuel substitutes. It is expected that the definition of a new excisable product through qualitative characteristics (density and distillation temperature of a mixture of hydrocarbons) will have a positive impact on reducing the volume of sales of excise-free fuel at gas stations. At the same time, in order to level out the increase in domestic purchase prices, specialized consumers of middle distillates are provided with the right to apply a tax deduction for paid excise duty with an increasing factor of 2.

Additionally, in order to increase the revenues of the consolidated budget of the Russian Federation, in April 2016, an unscheduled indexation of excise tax rates on motor fuel was implemented: the increase in rates for motor gasoline amounted to 2,600 rubles/t, for diesel fuel – 1,143 rubles/t.

In order to ensure financing of road infrastructure and the development of transport infrastructure, the Federal Law of the Russian Federation dated November 30, 2016 No. 401-FZ retained the excise tax rates on motor gasoline in force in April–December 2016 (13,100 rubles/t for gasoline below 5- 1st environmental class and 10,130 rubles/t – for the 5th class) and the excise tax rate on diesel fuel was increased (by 1,507 rubles/t).

Tax burden per ton of exported oil (USD)