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FinMin Proposes Halving Subsidies Paid to Refineries

RUSSIA
  • The Finance Ministry has proposed halving federal subsidies to the nation’s refineries from September through 2026, Kommersant report, citing a bill prepared by the department. The ministry previously proposed halving subsidies for just one year, through August 2024. The ministry is also recommending reducing the minimum Urals discount to Brent for tax purposes to $20/bbl starting September (starting July, Russia has set the minimum discount at $25/bbl).
  • A vessel fleet from Russia’s navy arrived at Shanghai on Wednesday, starting a seven-day visit to the Chinese city, according to a report by China’s military newspaper cited by Bloomberg. The Russian fleet will conduct a joint exercise with the Chinese counterpart at the end of the visit, focusing on communications and search and rescue.
  • The Chinese yuan took first place by volume of exchange trading in Russia, overtaking the dollar, Kommersant report. However, in the over-the-counter market, the volume of Chinese currency trading is considerably lower than the dollar, even though its share has increased.
  • Speaking at the Financial Congress in St. Petersburg, CBR Governor Nabiullina said the weakening RUB carries pro-inflationary risks, and that last year’s stronger currency was due to lower imports as foreign trade largely determines the exchange rate.

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