Russia's Fuel Crisis Deepens as Drone Attacks Knock Out Refineries
Russia, led by President Putin, is grappling with a severe fuel crisis, with soaring wholesale prices and widespread shortages across the country. The situation has been exacerbated by drone attacks on refineries, leading to significant output drops and export bans. The fuel crunch began in January, with wholesale fuel prices surging by over 40%. This has put upward pressure on inflation. Since then, more than 20 regions, from the Far East to Nizhny Novgorod, have faced fuel shortages. The crisis deepened in September when four major refineries, including the Kirishi 'Kinef' plant and Rosneft's Ryazan refinery, were forced to halt operations due to drone attacks. This led to a significant drop in gasoline and diesel output, plunging by 6% in August and another 18% in September. Consequently, gasoline output dropped by 1 million tons in September, causing shortages that covered up to 20% of national consumption. Drone strikes are estimated to be responsible for around 70% of the refinery outages, knocking out about 236,000 tons of refining capacity per day. By late September, around 38% of Russia's oil refining capacity was offline, affecting about 338,000 tons of crude per day. In response, Russia has banned gasoline exports and temporarily scrapped import duties on gasoline, diesel, and jet fuel within the Eurasian Economic Union to contain the crisis. The fuel crisis in Russia, triggered by drone attacks on refineries, has led to significant output drops and widespread shortages. The government, under Putin's leadership, has implemented measures to manage the situation, including export bans and duty suspensions. However, the crisis continues to impact the country's fuel supply and economy.
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