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Russia moves to import fuel, showing the depth of its gasoline crisis

Posted on: Jan 13, 2025 00:44 IST | Posted by: Cbc
Russia moves to import fuel, showing the depth of its gasoline crisis

As picture flooded societal media platforms o'er the weekend showing long lines at Russian gaseous state stations of the cross — and even fights breaking out in parking lots among frustrated drivers — President Vladimir Putin tried to calm concerns on Sunday and quell panic-buying by insisting that shortages triggered by weeks of Ukrainian strikes weren't critical.

But the steps the Russian government is taking reveal the depth of the crisis. It has already banned exports of gasoline and jet fuel, and on Tuesday, the Kremlin confirmed it is looking at importing oil products from other countries.

"If agreements can be reached at acceptable price points, then [imports] will move forward," said Dmitry Peskov, the Kremlin spokesperson, in a call with journalists.

"This will be another step toward stabilizing the market."

The fact that Russia, the world's third-largest exporter of oil in 2025, is trying to bring in refined products from abroad — something it rarely does — shows how Ukraine has managed to batter the country's refining capacity through weeks of sustained strikes.

Over the past three months, Ukraine has launched dozens of attacks on Russian refineries, including multiple strikes on a facility at the edge of Moscow that caused explosions to echo through the capital and a thick cloud of smoke to choke the sky.

The International Energy Agency called the level of disruption "unprecedented" in the history of the war, saying Russia's oil production in May was 10 per cent below its monthly target. Separately, industry sources told Reuters the country's gasoline production is down about 25 per cent from the daily average in June last year.

Russia grapples with fuel crisis after Ukraine attacks energy facilities

The shortfall has led to fuel restrictions, gas station closures and long lineups at many pumps. It is another widespread repercussion of the full-scale invasion that Moscow launched four and a half years ago and continues to wage.

It's created public frustration and sparked a series of social media posts. One widely shared meme is tied to a famous quote made by the late U.S. Senator John McCain who said back in 2014 that Russia was a "gas station masquerading as a country." 

In a 2023 speech, Putin said Russia was evolving and was no longer just a gas station. Today, people are sharing an image of that speech, saying Putin kept his promise, hinting the country can no longer supply enough gasoline to its people.

Russian officials wouldn't name which countries they are negotiating with regarding fuel imports, but the major Moscow-based newspaper Kommersant reported that officials may allow energy companies to temporarily produce lower-quality gasoline and diesel, and permit lower-quality imports.

Over the past few days, articles have begun to pop up in Russian online publications trying to convince motorists that it is sometimes better for a vehicle if the tank isn't always filled to the top.

Dozens of regions have rolled out limits on how much fuel people can buy. In Crimea, which Russia illegally annexed in 2014, a state of emergency has been declared because of the gasoline shortage.

"I try to keep my tank full. As soon as it hits half, I pull in and fill up 20 litres," he said. "Perhaps others are doing the same, stocking up."

He says gas stations have sometimes abruptly stopped drivers from fuelling up while they are waiting in line. On one occasion, he asked an employee if the gasoline had run out, but the worker replied that staff were simply on a "technical break."

Dmitry, who voiced suspicion that gas stations were intentionally trying to squeeze supply in an effort to drive up prices, only wanted to be identified by his first name because he was concerned about being seen criticizing the government.

Black smoke chokes Moscow after Ukraine's largest drone attack yet

He says he believes part of the fuel crunch is due to how Moscow has defended against drone attacks.

On June 18, when around 200 drones targeted sites in the Moscow region, videos that surfaced on social media showed mobile air defence teams trying to intercept the weapons.

An analysis conducted by the New York Times concluded that a dramatic explosion at a fuel storage facility — which caused the circular roof to fly through the air — could have been "self-inflicted friendly fire" caused by a Russian air defence missile.

Dmitry, who has watched several videos of the explosion, says he believes that was probably the case, which is why he says he finds the lines at gas stations even more frustrating.

"After that [strike], there was less and less gasoline, and now we have this pain in the neck."

While many Ukrainians have been posting videos and memes celebrating Russia's fuel woes, Maksim Blant — an economic analyst with Radio Liberty, an international broadcaster deemed "undesirable" by the Russian government — says the crisis can further weaken an already struggling economy.

Blant, who used to work in Russia's banking sector, says the fuel shortage is one of the reasons officials with the country's central bank may not be able to cut interest rates further, despite calls from financial executives. Russia's interest rate is currently pegged at 14.25 per cent.

"The gasoline crisis could become a trigger that could cause the whole economy to go down," he said.

Ukraine keeps striking Russian refineries and supply routes. How close is the country to an energy crisis?

Russian-held Crimea halts civilian gasoline sales following Ukrainian attacks

A new poll published by Gallup on Tuesday points to increasing economic pessimism among Russians, with 60 per cent of respondents saying that economic conditions where they live are getting worse.

The phone survey of 1,000 Russians was conducted between March 14 and May 6, which was before the fuel situation deteriorated further.

As Russian officials try to ease the fuel shortage, the energy industry is rushing to repair the refineries ahead of the next wave of Ukrainian attacks. Last week, Ukraine's president, Volodymyr Zelenskyy, said he approved a 40 day operation to strike targets and try to influence Russia to end its war.

Foreign Correspondent

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