After the EU embargo, liquefied gas in the domestic market of the Russian Federation halved in price

Valerii Bilyk25.12.2024

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Pipes labelled 'gas' in the yard of the Comprehensive Gas Treatment Unit No.3 at the Gazprom PJSC Chayandinskoye oil, gas and condensate field, a resource base for the Power of Siberia gas pipeline, in the Lensk district of the Sakha Republic, Russia, on Monday, Oct. 11, 2021. Amid record daily swings of as much as 40% in European gas prices, Russian President Vladimir Putin made a calculated intervention to cool the market last week by saying Gazprom can boost supplies to help ease shortages. Photographer: Andrey Rudakov/Bloomberg via Getty Images

Prices for liquefied petroleum gas (LPG) in Russia fell by half in December compared to November, which was the result of a significant surplus of fuel on the domestic market. About this informs Reuters agency.

The CNG surplus was created due to European Union sanctions, which limited the export of Russian fuel. Sanctions initiated by Poland, one of the largest importers of LPG from Russia, came into effect on December 20.

LPG, which consists mainly of propane and butane, is used as a fuel for cars, heating or the production of petrochemical products. Due to the increase in supplies to the domestic market, the price of gas in December fell to 14,000 rubles ($140) per ton, while in November it was 28,000 rubles.

LPG exports remain more profitable for Russia. For example, supplies to Poland would bring income of about 230 dollars per ton. Despite this, some types of Russian LPG are still allowed to be exported, but it is only one-fifth of the former volume of exports.

According to industry representatives, Russia has increased exports of LPG to China, Mongolia, Armenia, Georgia and Azerbaijan. Exports to China, according to traders, have prospects for further growth.