MOSCOW, October 2. /TASS/. Challenges arising in individual economic sectors, including oil refining, transport and logistics and agriculture, are in the sphere of higher attention and control by the government, Russian Deputy Prime Minister Alexander Novak said when speaking in the Federation Council, the upper house of the Russian legislative assembly.

TASS put together key statements of the deputy prime minister.

Russian economy

The slowdown of national economy’s growth rates after high figures in 2023-2024 is an expectable phase. "Following high growth rates in 2023-2024, the economy moved to more moderate dynamic. This is an anticipated normalization phase after overheating and a condition for inflation decline at the same time," Novak said.

The current investment situation in Russia is the correction after the large-scale increase by almost 40% in 2021-2024. "Investments are definitely a factor of long-term growth. We forecast their decline this year, a minor increase by 0.2% next year, and growth by 2.5% and 3% in 2028-2029. This is the correction after the rise by almost 40% during the period by 2024," the official said.

The economy continues to be supported by revenues of households and the consumer demand. "In August, the GDP increased by 0.8%, and by 0.6% year-on-year during eight months of this year. According to the updated outlook, we expect approximately the same GDP level by the end of this year," Novak noted.

Requirements to efficiency of implemented projects have become more stringent currently. "The recent stage goes from a high base and increases efficiency requirements exactly for the new projects," said the deputy prime minister.

The unemployment rate in Russia remains historically low and equals 2.2%.

Government tasks

The task at present is "to restore sustainable growth rates of the economy and ensure further growth of citizens’ well-being," Novak said. "We plan to this end to expand domestic production, increase efficiency of resources utilization and create conditions for new investments," he added.

Difficulties arising in individual economic sectors are in the sphere of higher attention and control by the government. "Current objective difficulties are present in individual sectors," Novak said. "This refers to oil refining, transport and logistical sphere, and agriculture," the official said.

Fuel market situation

The government promptly took a wide range of measures to saturate the domestic market with fuel. "The temporary ban on gasoline and diesel fuel exports, organized imported fuel supplies, revised rules of exchange trading to restrain wholesale prices, and decision made on fiscal stimulation of extra production and import of fuel," Novak said.

The gasoline import measure is temporary as national fuel production is usually 10-15% higher than the demand. The diesel fuel market is now balanced.

Russia covered fuel needs of its northern region in full scope. "We supported fall field work of agricultural producers and fully supported northern import requirements of regions," said Novak.

Export fuel situation

Russia will partly authorize diesel fuel exports in case of overproduction. |Although we have just recently renewed the export ban for October, we will monitor the situation and in case of diesel overproduction, we will consider partial opening of exports," Novak said.

Russia will not accumulate too much fuel because it will lead to a decline in refining and output of other products. "It is a normal situation because since we produce 80% more diesel than consume in the domestic market, we support the domestic market and cannot accumulate more surplus than available tankage. Otherwise refining volumes have to be lowered, and this may adversely affect the output of other products enjoying demand," he added.

The country may return to gasoline exports when the domestic market situation stabilizes.

Operations of refineries

Authorities are currently exploring measures to support oil refineries and postpone their upgrade deadlines. "[Proposals] of the Russian Energy Ministry in cooperation with other federal executive authorities to are now being explored to support oil refineries that cannot currently meet the schedule and upgrade agreements signed with the Ministry of Energy, with the Federal Antimonopoly Service, due to objective reasons," Novak said.

Government agencies and oil companies completed a huge amount of work to protect oil refineries, which already led to a significant decline in damage. "We have seen lately that damage from continuous raids against refineries is much more mitigated. Passive protection was established, corresponding to threat models. Active protection by air defense assets was strengthened," the official said.

Oil companies managed to quicker put refineries into operation again after attacks. Four Russian refineries were attacked this night and only one refinery is currently estimating damage there. "We actually thwarted all the attacks against our plants," Novak noted.

Forecast

Inflation in Russia may total 6.8% as of the end of this year, the deputy prime minister noted. "Concerning inflation, it totaled 4.93% year-to-date. In annual terms, growth is 6.26% as of the end of September, we forecast 6.8% by the end of the year," Novak said.

The national GDP growth rate is expected to be 1.4% this year with gradual achievement of 2.4% in 2029.

Fuel prices and global demand

Non-oil and gas exports is expected to grow from $220 bln to $260 bln.

Global markets currently experience diesel fuel shortage. "Prices are exorbitantly high in global markets, exactly for diesel. We see diesel prices in Europe, in the United States of America break records," Novak said. Such situation has occurred due to sanction restrictions, attacks against the refining infrastructure and closing of logistical transport routes.

OPEC+ countries continue assessing maximal production capabilities of the states participating in the agreement. "This effort is still underway, as far as I know," Novak noted.