Jens Asbjørn Bøgen
The crisis in Russia is growing by the day, it seems.
The Kremlin just took a drastic step by blocking all diesel fuel exports to protect its domestic supply.
By Wednesday, the country had enacted a full export ban following a series of devastating setbacks to its energy infrastructure. Deputy Prime Minister Alexander Novak shared the news during a government meeting led by Vladimir Putin.
The situation is shifting fast. According to a report by Meduza, the nation will even start importing fuel from its neighbors this month.
Novak openly acknowledged the growing public concern during the broadcast. “The current situation at gas stations is causing anxiety among people; to address the challenges at hand and stabilize the situation, the government continues to take additional steps,” he said.
Refineries under fire
The root of the crisis lies in a wave of successful Ukrainian drone strikes on major Russian oil refineries, reportedly disabling about a quarter of Russia’s total refining capacity.
The Moscow refinery took a brutal hit. It previously supplied 40 percent of the fuel used in the capital region. Behind the scenes, Western sanctions are making matters worse by blocking the high-tech components needed for repairs.
Official restrictions now limit drivers to just 20 liters of fuel per vehicle. While local reports say this applies to 20 regions, Meduza noted that Ukrainian estimates place the actual shortage across 60 provinces.
To prevent unrest, the Kremlin is spending 200 billion rubles, or about $3 billion, a month to artificially lower pump prices. Even so, black-market rates have tripled.
Lowering the standards
Desperate times call for unusual measures. Moscow has officially lowered its environmental fuel standards from Euro 5 to Euro 3 while seeking fuel shipments from Belarus and Kazakhstan.
But getting fuel across borders is becoming harder. On the same day the ban took effect, Kazakhstan placed strict new limits on incoming cargo vehicles. They can now enter only once per day.
