Moscow has taken urgent measures to address the worsening fuel supply crisis in the domestic market, the worst internal fallout from the conflict since it erupted in the winter of 2022.

As the Kremlin accelerates steps to mitigate the repercussions, calls by Russian officials have emerged not to allow panic to take hold due to the dire situation in this 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 producers of oil and energy resources.

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

By July, the extent of the damage to this 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 adopted to mitigate its impact, officials in several government sectors became preoccupied with trying to ease 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 will overcome the fuel market problems in a short period. He urged avoiding panic, stressing the importance of "unity 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 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 trading. 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 100 billion rubles have also been extended until the end of the year.

According to the document, which has already taken effect, 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 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. Certain accredited companies, whose list is determined by the government, are also entitled to this support when importing finished products from abroad.

People walk in Red Square outside the Kremlin on a summer day in downtown 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 were due to changes in logistics. To meet the needs of Russian citizens, authorities took additional measures, including a ban on gasoline exports, changes in foreign exchange 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 difficulties, mentioning the establishment of a special command center operating around the clock for this purpose. He also called for minimizing the impact of Ukrainian attacks on fuel infrastructure facilities. The Russian Central Bank viewed the difficulties in the Russian fuel market as temporary and will assess their impact on inflation before its key 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 foreign exchange 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 from Ukrainian strikes, and a decline in its European market share due to sanctions, prompting Moscow to import gasoline to fill the domestic shortfall. Moreover, attacks on oil refineries and infrastructure have destroyed and disabled vital parts of the Russian refining sector. The most significant 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 Russia's largest oil refinery, causing it to stop selling gasoline and diesel on the market through the Saint Petersburg International Mercantile Exchange.

Thus, direct strikes on refineries led to a significant drop in refined product output, causing an internal fuel crisis and a shortage of gasoline and diesel supplies, leading to 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 monthly to bridge the gap and ease pressure on the domestic Russian market during the peak consumption summer months. Not to mention the original losses of 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 targeting of energy facilities and related infrastructure, especially since last March, when both sides expanded strikes against this sector. Fuel facilities have become one of the main arenas of confrontation, as Ukraine succeeded in targeting Russian oil refineries, while Moscow intensified its attacks on fuel stations inside Ukrainian territory.

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

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