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Russia is facing an increasingly severe fuel crisis as Ukrainian strikes on key energy infrastructure disrupt fuel supplies across the country, Politico reports.
For much of the full-scale war, the Kremlin managed to shield ordinary Russians from the conflict's economic consequences. According to the report, that is now changing.
Recent Ukrainian missile and drone attacks on oil refineries and energy facilities have transformed the war from a distant concern into a direct problem for millions of Russians. Around two-thirds of Russia's 83 regions are reportedly experiencing fuel shortages, creating serious challenges for businesses and everyday consumers.
The situation is particularly acute in occupied Crimea, where the occupation authorities have declared a state of emergency and banned fuel sales. The shortages are also hitting the peninsula's tourism sector.
Last week, Russian President Vladimir Putin publicly acknowledged the issue, convening senior officials in Moscow to discuss possible solutions. While admitting that attacks on infrastructure have created difficulties, he insisted the fuel shortage was "not critical" and claimed Russian strikes were causing greater damage to Ukraine.
Russia has also stopped publishing domestic fuel price data, making it harder to assess the full scale of the crisis. However, social media has been flooded with videos showing long queues and fights at petrol stations.
According to the report, India, now the largest foreign buyer of Russian crude oil, has begun exporting refined fuel back to Russia to help ease shortages.
Analysts believe Ukraine has deliberately targeted refinery components that Russia cannot easily replace, including catalytic cracking units.
"The amount of gasoline available in Russia is now determined by a race between Ukrainian drones and Russian repair crews," said Sergey Vakulenko, an analyst at the Carnegie Endowment. "If Ukraine maintains the pace of its attacks while increasing the damage they cause, the advantage shifts to Kyiv. That is exactly what we are seeing."
Russia still has relatively sufficient diesel supplies for trucks and agriculture, but officials are considering an export ban during the harvest season to protect domestic stocks. Exports of gasoline and aviation fuel have already been suspended.
Inflation concerns grow
Even where fuel remains available, prices continue to rise, increasing inflationary pressure across the Russian economy.
The Central Bank of Russia has warned that higher fuel prices are likely to have a longer-lasting impact on inflation than in previous years.
Although a government agreement with major oil companies has helped limit official fuel prices, an expanding unofficial market is selling fuel at much higher prices, forcing businesses to pass additional costs on to consumers.
These concerns influenced the central bank's decision to reduce its key interest rate by only 0.25 percentage points in June, lowering it to 14.25%, despite calls from business leaders for larger cuts.
The cautious approach has intensified tensions between Central Bank Governor Elvira Nabiullina and business representatives, including Sberbank CEO German Gref, who argues the economy has cooled enough to justify faster rate reductions.
Nabiullina rejected that idea, warning that aggressive cuts could trigger a surge in inflation or even stagflation.
"I think we are all concerned about the same thing. I don't believe there is anyone in the country who wants anything other than a quick end to the fighting," Gref said.
According to Janis Kluge of the German Institute for International and Security Affairs, military and classified spending now accounts for nearly half of Russia's total government expenditure, while liquid assets in the National Welfare Fund have fallen from about 7% of GDP before the invasion to just 1.7% of GDP as of April.
As a result, analysts say the Kremlin is facing mounting pressure not only from fuel shortages but also from the growing financial burden of sustaining the war.
