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Fuel retailing in Russia has lost its profitability

... Vertically integrated firms, which have the opportunity to sell fuel in bulk and export it abroad, will be able to survive the crisis. Their integrated margin easily covers the retail losses. However, there are less than a third of such filling stations ... .... According to experts, the current damper mechanism used in Russia discriminates against independent retail entities. Large oil holdings receive subsidies from the state, allowing themselves to wholesale at higher prices, and keep the low costs of fuel ...

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