Moscow has taken urgent measures to confront the worsening crisis in fuel supplies to the domestic market, the worst internal repercussion of the conflict since it erupted in the winter of 2022.

As the Kremlin accelerates steps to mitigate repercussions, calls have emerged from Russian officials to prevent panic from taking hold due to the dire situation in this sector, especially after very long queues appeared in a number of Russian cities for fuel and diesel products, almost for the first time in the history of Russia, which is one of the world's largest producers of oil and energy resources.

Smoke rises from an oil refinery following a Ukrainian drone attack in Moscow on June 18, 2026 (Reuters)

With the arrival of July, the scale of damage to this sector became clear, a few months after the conflict with Ukraine entered a new phase in which the targeting of energy infrastructure, fuel storage depots, and oil industrial facilities expanded.

After a series of meetings held by the Russian leadership to confront the worsening crisis, during which it took strict measures to mitigate its repercussions, officials in several government sectors busied themselves trying to ease domestic repercussions by reassuring citizens that the current crisis is temporary and can be quickly overcome. Vyacheslav Volodin, Speaker of the State Duma, announced that Russia will overcome fuel market problems in a short period. He urged avoiding panic, emphasizing the importance of "cohesion and mutual understanding to overcome these problems."

Volodin said that Russia "will overcome fuel market problems, just as it previously overcame foreign attempts to destroy the financial system and economy."

He added that "spreading panic is the worst thing that can be done. Everyone's will must unite to endure."

Russian President Vladimir Putin speaks during a plenary session of the 23rd congress of the United Russia party at the CSKA Arena in Moscow on June 28, 2026 (EPA)

Last week, President Vladimir Putin signed a law aimed at supplying the domestic market with automobile fuel and supporting Russian oil refineries. The law stipulates that the government will determine the types of fuel allowed for trade. According to the measures taken, high-octane gasoline can be produced by directly blending raw materials with other components. Agreements to modernize refineries investing more than 100 billion rubles have also been extended until the end of the year.

According to the document, which has already entered into force, high-octane gasoline will be considered fully produced automobile fuel, and excise tax will be added to the final price.

Proof of receipt of high-octane gasoline produced in this manner will be required along with the necessary documents, which will be collected within three months. The proportion of gasoline produced directly will be determined based on the results of each tax period.

Moreover, companies will be able to receive refining support during the blending process, just as during the full refining cycle. Certain approved companies, whose list is determined by the government, are also entitled to this support when importing final products from abroad.

People walk in Red Square outside the Kremlin on a summer day in central Moscow, Russia, on June 26, 2026 (EPA)

Some regions of the country experienced fuel supply interruptions this summer. As Deputy Prime Minister Alexander Novak explained, these interruptions are due to changes in logistics. To meet the needs of Russian citizens, authorities have taken additional measures, including a ban on gasoline exports, changes in foreign currency trading to curb prices, tax incentives for fuel imports, and increased production in Russia.

Putin had earlier announced that the relevant departments are working quickly to overcome the difficulties, pointing to the establishment of a special headquarters operating around the clock for this purpose. He also demanded minimizing the impact of Ukrainian forces' attacks on fuel infrastructure facilities. The Central Bank of Russia considered the difficulties in the Russian fuel market temporary and will assess their impact on inflation before its main meeting to set the interest rate on July 24.

To ensure the continued flow of fuel supplies, Russia is implementing measures including a ban on gasoline and diesel exports (for non-producers), changes in currency trading, tax incentives for fuel imports, and increased production.

Russian losses

People walk in Red Square in the Russian capital Moscow (AP)

According to reports, Russia's losses in the energy sector are distributed between severe damage to infrastructure and refineries due to Ukrainian strikes, and a decline in its European market share due to sanctions, leading Moscow to import gasoline to fill the domestic shortfall. Additionally, attacks on oil refineries and infrastructure have caused destruction and disruption of vital parts of the Russian refining sector, with the most prominent losses according to reports being production disruption. Expert estimates indicate that about a third of Russia's oil refining capacity has been shut down. The strikes also resulted in the shutdown of Russia's largest oil refinery, causing it to stop selling gasoline and diesel on the market via the St. Petersburg International Mercantile Exchange.

Consequently, direct strikes on refineries led to a significant decrease in the production of refined products, causing a domestic fuel crisis and a shortage of gasoline and diesel supplies, resulting in long queues at gas stations in several Russian regions.

Moscow was forced to import gasoline from countries such as India and Belarus, planning to import about 400,000 tons per month to fill the gap and ease pressure on the domestic Russian market during the summer months when consumption peaks. Not to mention the original losses of the oil sectors due to sanctions and the loss of European markets.

A satellite image taken on June 22, 2026, shows smoke rising from the Crimean Bridge, also known as the Kerch Strait Bridge, which connects the Crimean Peninsula to the Russian mainland (AFP)

A new phase in the conflict

The war with Ukraine entered a new phase after expanding the targeting of energy facilities and their infrastructure, especially since last March, when both sides expanded strikes against this sector. Fuel facilities became one of the most prominent battlegrounds, as Ukraine succeeded in targeting Russian oil refineries, while Moscow intensified its attacks on fuel stations inside Ukrainian territory.

The Ukrainian strikes led to disruptions in the distribution of gasoline and diesel in several Russian regions, especially in Siberia, where long queues appeared at gas stations, and some drivers were forced to wait for hours, reaching, according to reports, more than 36 hours to get fuel. The crisis prompted some local authorities to take exceptional measures to deal with the congestion of drivers, as Russia began searching for alternatives to compensate for the supply shortage.

In response to Russia's heavy strikes on Ukrainian energy facilities and fuel distribution centers, Ukraine has intensified its attacks on Russian facilities since March, aiming to deprive Russia of the revenues from rising oil prices after the US-Israeli war on Iran broke out.