Russia Weighs Cutting Multibillion-Dollar Subsidies to Oil Firms
- Invasion of Ukraine is straining government finances
- Refiners may get less compensation for domestic fuel sales
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Russia’s government is considering cutting subsidies to the nation’s oil refineries as it looks for ways to limit spending amid the costly war in Ukraine, according to people familiar with the matter.
Last year, the Russian state spent 2.17 trillion rubles ($26.6 billion) compensating refiners for the difference between the base price of domestic fuels and their theoretical value if exported to Europe, according to data from the Finance Ministry. In the first quarter of 2023, the companies received more than 253 billion rubles, the data show.