Kathrine Frich
Officials are spending billions of dollars every month trying to keep pump prices artificially low.
Summer usually means road trips and busy farm seasons in Russia.
Both activities require massive amounts of cheap energy to keep an economy moving smoothly.
But right now, one of the world’s biggest energy giants is struggling to keep its own engines running.
Drones hit hard
Since the beginning of the year, Ukrainian forces have targeted oil refineries deep inside Russian territory. These repeated drone strikes are causing severe damage to critical infrastructure.
A major facility near Moscow recently suffered two quick attacks. According to United24 Media, the plant previously supplied nearly half of the fuel needed in the capital region. Now, it will stay offline until early 2027.
The damage goes far beyond a single city. Fuel supplies began drying up across the country by late May.
Pumping the brakes
Shortages are currently hitting dozens of regions. Official limits on fuel sales are active in 21 areas, with authorities banning the use of portable canisters and restricting drivers to just 20 liters per visit.
The situation on the ground might be far more severe. Ukrainian President Volodymyr Zelenskyy stated that the real picture is worse, noting that restrictions operate across 60 regions.
To keep cars moving, the government even dropped environmental fuel standards. Drivers are now pumping lower quality gas into their vehicles just to stay on the road.
Buying from neighbors
The internal crisis is forcing Moscow to look outside its borders. The Kremlin is currently asking Kazakhstan and Belarus to send emergency fuel shipments.
A stunning reversal. This is a shocking shift for a massive oil exporter. Reports indicate they might need to rely on even more foreign suppliers soon.
Meanwhile, officials are spending billions of dollars every month trying to keep pump prices artificially low. The state heavily subsidizes the pumps.
The economic toll
Even with heavy government spending, prices continue to climb steadily every week. Diesel costs are rising at an incredibly fast pace, right at the exact moment when farmers desperately need affordable fuel for the vital summer agricultural harvest.
Black market prices have exploded in the hardest hit regions. Some desperate buyers are paying two or three times the normal rate to fill up.
Global oil prices are dropping. Because of this shift, Moscow has far less money coming in to fund their operations. Yet they still have to pay for costly refinery repairs while simultaneously backing an incredibly expensive military campaign.
Sources: United24 Media
