The idea of the Ministry of Energy is to control domestic prices by the growth of the supply of light oil products on the domestic market. This mainly relates to gasoline. However, we do not see any substantial volumes of gasoline marketable on the Russian internal market going abroad. We therefore do not expect this idea to have a sizable effect on the oil companies’ financials. On the other hand, limiting oil companies’ operations is a negative, sentiment-wise. All in all, the news is neural and we do not expect any market reaction.
Dmitry Loukashov, Alexander Kirevnin, Ekaterina Rodina, Elena Kopylova
VTB Capital analyst
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