RUSSIAN oil producers are facing mounting issues with the environmentally safe disposal of associated gas produced at legacy oilfields across the country due to the drop in demand for liquefied petroleum gas. While there has been strong demand for heavily discounted Russian oil from customers in India and Asia, exports of LPG - essentially the mixture of propane, butane and heavier petroleum gases - have almost stopped after the Russian invasion of Ukraine in February. Russian Union of Industrialists & Entrepreneurs chairman Alexander Shokhin recently wrote to Energy Resources & Environmental Minister Alexander Kozlov requesting a temporary lifting of the current limit for oil producers to flare not more than 5% of produced associated gas, according to Moscow business daily Kommersant. Shokhin is well-known for acting as an intermediary between Russian business leaders and the Kremlin, communicating grievances and proposals to ministries and President Vladimir Putin.
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