Reducing the Damper Will Reduce Super Profits of Russian Refineries, but Will Not Make Them Unprofitable

Andrey S. Kaukin – Acting Head of the Scientific Direction «Real sector» of the Gaidar Institute for Economic Policy; Head of Department for System Analysis of Sectorial Markets of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Eugenia M. Miller – Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The RF Ministry of Finance is considering halving the payments to oil refining companies under the damping mechanism from September 2023 for a period of one year. The publication assesses the effects of the adjustment on the economics of the refining industry, in particular, the possibility to provide the domestic market with break-even production of petroleum products.

Key words: oil refining sector, petroleum products, damper mechanism.

JEL-codes: H24, L71, Q38, Q41.