Fuel rationing has been imposed across 90 percent of Russia following drone strikes on refineries that halted nearly half of the country's 6.6 million barrels-per-day refining capacity since late February, according to U.S. consultancy Energy Intelligence. Moscow has banned exports of certain gasoline, jet fuel, and diesel in response.
The crisis is squeezing agricultural producers in southern regions, where farmers lose roughly 1,000 roubles per tonne of grain to surging diesel prices and purchase offers for harvests have dried up. Agriculture Minister Oksana Lut acknowledged fuel problems in all regions but pledged state-organised supply. SovEcon analyst Andrei Sizov warned Russia could deliver five to ten million fewer tonnes of wheat to world markets if the Sea of Azov remains restricted.
President Vladimir Putin warned last week against attempts to sow panic among Russians, as the military campaign in Ukraine, underway since February 2022, continues.