Moscow has taken urgent measures to confront the worsening crisis in fuel supplies to the domestic market, in the worst domestic reflection of the conflict since its outbreak in the winter of 2022.

As the Kremlin accelerates steps to mitigate the 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 lines appeared in a number of Russian cities to obtain 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, June 18, 2026 (Reuters)

It became clear with the arrival of July the extent of the damage to this sector, a few months after the conflict with Ukraine entered a new phase in which the targeting of energy infrastructure, fuel storage depots, and oil industry 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 became preoccupied with trying to ease the domestic fallout 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 the fuel market problems in a short period. He urged avoiding panic, stressing the importance of 'solidarity and mutual understanding to overcome these problems.'

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

He added, '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 determines 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 on modernizing refineries that invest more than one hundred billion rubles have also been extended until the end of the year.

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

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

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

People walk on 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, the 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 earlier stated that the relevant departments are working quickly to overcome the difficulties, pointing to the creation 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. Russia's central bank considered the difficulties in the Russian fuel market temporary and will assess their impact on inflation before its main meeting to set interest rates 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 on Red Square in the Russian capital Moscow (AP)

According to reports, Russia's losses in the energy sector were 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 resort to importing gasoline to fill the domestic shortage. Furthermore, the attacks on oil refineries and infrastructure have caused destruction and disruption of vital parts of the Russian refining sector. The most prominent losses, according to reports, include production disruptions, with expert estimates indicating that about a third of Russia's oil refining capacity has been shut down. The strikes also halted the largest oil refinery in Russia, causing it to stop selling gasoline and diesel on the market via the St. Petersburg International Mercantile Exchange.

Thus, the direct strikes on refineries led to a significant decrease in the production of refined products, causing an internal fuel crisis and a shortage of gasoline and diesel supplies, resulting in long lines 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 relieve pressure on the domestic Russian market during the summer months, which see peak consumption. Not to mention the original losses to the oil sectors due to sanctions and the loss of European markets.

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

New phase in the conflict

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

Ukrainian strikes led to disruptions in the distribution of gasoline and diesel within several Russian regions, especially in Siberia, where long lines appeared at gas stations, while some drivers had to wait for long hours, according to reports, up to more than 36 hours to obtain fuel. The crisis prompted some local authorities to take exceptional measures to deal with the congestion of drivers, at a time when Russia began searching for alternatives to compensate for the supply shortage.

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