Russia considers LPG export ban for non-producers through end of 2026
In short
Russia is considering banning liquefied petroleum gas exports by non-producers through the end of 2026, Deputy Prime Minister Alexander Novak said. No decision has been made, and the Energy Ministry is examining the option.
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Russia is considering a ban on exports of liquefied petroleum gas by companies that do not produce it, Deputy Prime Minister Alexander Novak told journalists at Russian Energy Week. The restriction under discussion would last through the end of 2026, according to RBC, Vedomosti and Kommersant. Novak said no decision had yet been made and the Energy Ministry was examining the option in light of current market conditions. [ 4 , 5 , 6 , 7 , 8 ]
Earlier reporting linked the proposal to domestic fuel supplies during plant maintenance. Interfax, citing two industry sources who spoke to RBC, said the Federal Antimonopoly Service raised the issue at an October 13 meeting with Novak. The proposal concerns LPG used as motor fuel. Kommersant also reported that the initiative aimed to supply the market during plant repairs. [ 1 , 2 ]
Interfax reported that LPG's exchange price was approaching its historical peak. The index for European Russia reached 48,105 rubles per tonne at the close of trading on October 14, compared with a record of 53,353 rubles in August 2021. Citing research group Petromarket, the outlet said Russian LPG exports increased 2.3% last year to 3.86 million tonnes. Turkey, China and Central Asian countries are traditional destinations, it reported. [ 2 ]
Vedomosti recalled that on September 28 the Energy Ministry said it had observed no systemic domestic LPG shortage and had received no reports of widespread disruptions affecting household cylinders or vehicle refuelling. The ministry said it continued monitoring the situation and working with market participants. Interfax noted that LPG had remained among the few fuels not subject to export restrictions. [ 2 , 7 ]
Why it matters
The proposal concerns LPG used as vehicle fuel and aims to supply the domestic market during plant repairs, according to reporting citing industry sources. It would extend export restrictions to a fuel that has remained outside such controls.
Key facts
- Novak said the Energy Ministry was examining export restrictions and no decision had been made. [ 4 , 6 , 7 , 8 ]
- The proposed ban would apply to non-producers through the end of 2026. [ 2 , 5 , 7 , 8 ]
- Industry sources said the Federal Antimonopoly Service raised the proposal at an October 13 meeting. [ 1 , 2 ]
- LPG reached 48,105 rubles per tonne on the St. Petersburg Exchange on October 14, Interfax reported. [ 2 ]
Confirmed by several sources
Still unclear
- Whether an export restriction will be adopted and on what final terms. Novak said no decision had been made and the ministry was still considering proposals.