OREANDA-NEWS  A combination of factors led to the collapse in the cost of liquefied petroleum gas (LPG), which has fallen 1.8 times since the beginning of December in the Urals and Siberia, where its main producers are located, and 1.6 times in the European part of Russia. This was stated by Dmitry Gusev, Deputy Chairman of the Supervisory Board of the Reliable Partner Association, as assessed by TASS.

Among the reasons for the price dynamics that Reuters had previously drawn attention to, the expert cited volatility due to the fact that LPG in the Russian Federation is "a commodity with maximum market pricing", the cost of which is not affected by the authorities, as well as the traditionally declining winter consumption of this type of fuel and the impact of European Union (EU) sanctions. Since December 20, it has finally banned the purchase of LPG from Russia (previously, it was allowed to purchase it under contracts concluded before the imposition of sanctions).

"Until shipments get better, and they have already been redirected to the eastern directions, to the same Turkey, LPG can go down quite well," Gusev said.

Earlier it was reported that since the introduction of EU restrictions, additional volumes of LPG have begun to enter the domestic market, against which the Russian Federation is seeking to increase supplies to China, Mongolia, Armenia, Georgia and a number of other non-European countries.