Russian oils: Euro-2 gasoline and diesel sales to be banned
According to Vedomosti, the Deputy Minister of Energy Pavel Fedorov said that sales of motor fuels of standards below Euro-3 are to be banned from January — BP Holding, ord. (TNBP RX) 2013, as planned. Those oil companies not ready for the ban agreed to import the necessary volume of gasoline and diesel fuel.
The ban on motor fuels of lower than Euro-3 class was announced long ago and has been postponed several times (since 2009). We do not expect to see any significant drop in marketing volumes, although it could potentially support gasoline prices. The schema for importing motor fuels looks financially unjustified, at least under the current pricing environment. However, were Russian prices to increase, Belorussian tolling schemes might be started again. We do not expect any market reaction to the news.
Dmitry Loukashov, Alexander Kirevnin, Ekaterina Rodina, Elena Kopylova, Mikhail Zarkhi
VTB Capital analyst
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