Russia's Fuel Crisis Spirals Out of Control Amid Ongoing Strikes

The ongoing conflict in Ukraine has led to systematic strikes on Russian oil transportation and refining infrastructure, resulting in reduced oil refining volumes. According to official data, Russia's oil refining capacity has fallen to its lowest level in 21 years - 3.9 million barrels per day. This decline is attributed to the high intensity of strikes on oil refineries, which have forced Russian companies to cut crude oil production.

Russia's fuel crisis has been exacerbated by the country's decision to shift toward exporting crude oil instead of petroleum products. As a result, the shortage has affected every region in Russia, with dozens of regions introducing restrictions on gasoline sales at gas stations. Even the Moscow region experienced fuel supply problems, prompting local authorities to urge residents to reduce their number of trips and use public transportation.

To address the consequences of the fuel crisis, Russia restricted diesel fuel exports in early July and began importing petroleum products from countries such as Belarus, India, and Kazakhstan. However, imports are unlikely to solve the problem, as foreign refineries have limited capacity.