Russia considering loosening environmental regulations to increase gasoline supply | Global News

Russia is considering easing fuel environmental standards to combat possible shortages, industry sources told Reuters. The move could bring in an additional 10% of gasoline to meet rising demand. Ukrainian drone attacks have reduced Russian oil refining capacity by 14%, leading to accusations of terrorism. Ukraine defends its actions as necessary for survival.

To address potential shortages, Russia has banned gasoline exports with some exceptions. The government is contemplating lowering standards for additives and ethanol content, while maintaining sulphur levels. Since 2016, only high-quality Euro-5 grade gasoline has been allowed.

The proposed relaxation of environmental regulations would be a departure from plans to improve fuel quality and ecological standards set in 2011. Russian refineries, many built in the mid-20th century, have seen output increase by two-thirds since 2000.

The measure is seen as a way to boost production at outdated facilities like the Orsk refinery and Angarsk plant, which are major producers of low-grade gasoline. In 2023, Russia produced nearly 44 million tons of gasoline, with first-quarter 2024 output at 11.1 million tons.

The energy ministry has not commented on the potential changes. The move reflects a shift in priorities from environmental concerns to addressing immediate fuel shortages, highlighting the challenges faced by Russia’s energy sector in the face of geopolitical tensions.