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Refinery strikes force the Kremlin to prioritize fuel supplies
After a wave of strikes on oil refineries, the Kremlin has prioritized keeping Moscow supplied with fuel, leaving many other Russian regions facing gasoline shortages, Reuters reports.
According to industry sources, Russia has redirected gasoline supplies from the Urals and Siberia to the Moscow region, increased fuel imports from Belarus, and even begun purchasing gasoline from India to stabilize supplies.
One Reuters source said fuel is now being shipped to the capital from the Achinsk oil refinery in Russia’s Krasnoyarsk region. Market participants estimate that several hundred thousand metric tons of additional gasoline have been redirected to Moscow from other parts of the country.
Fuel crisis in Russia
At the same time, fuel shortages have been affecting regions across all 11 of Russia’s time zones since May, when Ukraine intensified strikes on Russian oil refineries in an effort to weaken Moscow’s military capabilities.
Industry sources said gasoline production in Russia fell to around 65% of average seasonal demand in early July. For several months, domestic output has been insufficient to meet demand.
The situation became particularly difficult after an attack on the Moscow oil refinery in mid-June. Long lines formed at gas stations across the capital, and many drivers struggled to find fuel.
By mid-July, however, traders and eyewitnesses interviewed by Reuters said fuel supplies in Moscow and the surrounding region had largely stabilized. Gasoline and diesel were once again widely available at filling stations.
The Moscow region is home to around 22 million people - more than one-sixth of Russia’s population. Reuters noted that since Soviet times, the capital has traditionally received priority in the distribution of essential goods.
The most severe shortages have been reported in Russian-occupied Crimea. Authorities there have introduced fuel rationing, canceled children's tourism programs, and imposed a range of restrictions on public life, including shorter operating hours for shops and cafés.
Earlier, the Institute for the Study of War (ISW) said Russia’s economic problems have expanded far beyond fuel shortages.
According to ISW analysts, the deteriorating situation is being driven by record military spending, high inflation, shrinking financial reserves, and the economic consequences of Russia’s war against Ukraine.
