Moscow has taken urgent measures to address the worsening fuel supply crisis on the domestic market, the worst internal repercussion of the conflict since its onset in the winter of 2022.

As the Kremlin accelerates steps to mitigate the fallout, Russian officials have called for preventing panic over the dire situation in the sector, especially after very long queues appeared in several Russian cities for fuel and diesel products – almost for the first time in the history of Russia, one of the world's largest oil and energy producers.

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

By July, the scale of damage to the sector became clear, months after the conflict with Ukraine entered a new phase with expanded targeting of energy infrastructure, fuel storage depots, and oil industry facilities.

After a series of meetings held by the Russian leadership to address the worsening crisis, during which strict measures were taken to mitigate its effects, officials in various government sectors focused on easing domestic repercussions by reassuring citizens that the current crisis is temporary and can be quickly overcome. Vyacheslav Volodin, chairman of the State Duma, announced that Russia would overcome the fuel market problems in a short time. He urged avoiding panic, stressing the importance of 'unity and common 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 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 (AP)

Last week, President Vladimir Putin signed a law aimed at supplying the domestic market with motor fuel and supporting Russian oil refineries. The law stipulates that the government will determine the types of fuel allowed for trading. According to the measures taken, high-octane gasoline can be produced by directly blending raw materials with other components. Agreements to modernize refineries that invest over 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 motor 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 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.

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

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

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 earlier stated that relevant departments are working quickly to overcome difficulties, noting the establishment of a special 24-hour task force for this purpose. He also called for minimizing the impact of Ukrainian 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 continued fuel supply flows, 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 divided between severe damage to infrastructure and refineries from Ukrainian strikes, and a decline in its European market share due to sanctions, leading Moscow to import gasoline to cover domestic shortages. Moreover, attacks on oil refineries and infrastructure have destroyed and disabled vital parts of Russia's refining sector. The most prominent losses, according to reports, include production disruptions. Expert estimates indicate that about a third of Russia's oil refining capacity has been shut down. The strikes also shut down Russia's largest oil refinery, causing it to cease selling gasoline and diesel on the market via the St. Petersburg International Commodity Exchange.

Consequently, direct strikes on refineries led to a significant drop in refined product output, 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 like India and Belarus, planning to import about 400,000 tons per month to fill the gap and ease pressure on the Russian domestic market during the summer months of peak consumption. This is in addition to the original losses in 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, which connects the Crimean Peninsula to mainland Russia (AFP)

New phase in the conflict

The war with Ukraine entered a new phase after expanding the targeting of energy facilities and infrastructure, especially since last March, when both sides expanded strikes on this sector. Fuel facilities have become one of the main battlegrounds, with Ukraine successfully targeting Russian oil refineries, while Moscow intensified its attacks on fuel stations inside Ukrainian territory.

Ukrainian strikes caused disruptions in gasoline and diesel distribution in several Russian regions, especially in Siberia, where long queues appeared at gas stations, and some drivers were forced to wait for hours – according to reports, up to 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 revenues from rising oil prices after the outbreak of the US-Israeli war on Iran.