Several regions of Russia are again facing fuel shortages after Ukraine resumed almost daily attacks on the country’s oil refineries.
From Saturday, the Kaluga region, which borders Moscow, will introduce a rationing system for cars based on license plates, according to regional governor Vladislav Shapsha. The Astrakhan region on the Caspian Sea coast plans to limit fuel sales to 40 liters per vehicle and temporarily restrict the operation of a number of city gas stations, Governor Igor Babushkin said late Thursday. Earlier this week, the Orenburg region in the Urals introduced a rationing system that provides for the sale of fuel depending on the license plates of cars, limits the amount of gasoline and diesel fuel sold to each driver at gas stations, and prohibits refueling fuel canisters. This happened after a Ukrainian drone strike on the Orsk refinery located in this region about 1,500 kilometers (932 miles) southeast of Moscow.
Officials said repairs to the Orsk refinery could take up to six months. “We are preparing for the worst-case scenario,” Governor Evgeny Solntsev said on Thursday, adding that the Orenburg region would need fuel supplies from other regions of Russia.
Resumption of attacks and impact on supplies
Ukraine has again focused drone strikes on oil refineries after Russian refineries had time to repair and increase processing volumes during a brief lull in July. Along with government measures, by the beginning of this month, regions across Russia increased fuel distribution volumes or even lifted restrictions on its purchase, while gasoline and diesel prices at gas stations decreased. The resumption of Ukrainian attacks is again putting pressure on supplies.
According to Bloomberg calculations based on public statements from both countries, Kyiv has already attacked 11 of 34 major refineries this month, mostly linked to Russia’s major oil companies. The latest strike on Friday targeted a gas processing complex in Ust-Luga on Russia’s Baltic coast. Most of the facilities hit this month were also targeted earlier this year.
Spread of fuel rationing
Some regions located much closer to Moscow or the border with Ukraine earlier this week warned of reduced fuel supplies. This happened after several refineries supplying gasoline and diesel fuel to the European part of Russia were damaged as a result of Ukrainian attacks. This could provoke another jump in fuel prices, creating a potential political headache for the Kremlin, which is preparing for parliamentary elections across Russia next month.
Energy giant “Rosneft” reduced gasoline supply limits to the Kostroma region over the weekend after an attack on August 6 on the Yaroslavl refinery, one of the largest in Russia, Governor Sergey Sitnikov said on Monday.
The governor of the Voronezh region, located about 470 kilometers south of Moscow, also warned this week of deteriorating fuel supplies. Alexander Gusev noted: “There are no signs that the situation will improve in the near future,” adding that the situation had worsened due to companies redistributing fuel supplies to other parts of the country, “where the problem is even more acute.”
The neighboring Lipetsk region on Thursday resumed a license plate-based rationing system. These rules apply to gas stations owned by “Gazprom,” “Lukoil,” “Rosneft,” and “Teboyl,” reported regional governor Igor Artamonov.
Source: Bloomberg
