Putin admits fuel crisis as Russia considers allowing lower-quality fuel after Ukraine refinery strikes

Shortages spread nationwide

Fuel shortages have widened from Crimea to southern Russia and Siberia, according to residents and local media. The independent outlet Mediazona reported that 56 regions had imposed distribution restrictions as of Sunday. Only Moscow and a handful of remote areas remain free of formal rationing, though even in the capital queues have formed and some privately owned filling stations have raised prices by more than 10% to around 80 roubles a litre. In Crimea, civilian fuel sales were suspended entirely to prioritise military vehicles, while Sevastopol saw limited public sales at 189 roubles per litre, nearly triple the standard rate. Putin himself noted that fuel reserves in Crimea were sufficient for only a few days but insisted he was confident of fresh deliveries.

Putin breaks silence

President Putin convened a televised meeting with economic officials and oil executives on Sunday, delivering an unusually frank assessment. He urged those present "to minimise the consequences of terrorist attacks against Russian infrastructures" and to pay particular attention to the farming sector, where the harvest depends on timely fuel deliveries.

“As for strikes against critical infrastructure in general, and energy infrastructure in particular, of course these attacks on our infrastructure facilities create problems, that’s obvious.”

He said the shortage was "not critical" but acknowledged that queues persist and that some drivers struggle to find the right grade of petrol.

Policy response under consideration

Russian authorities are racing to contain the damage. The business daily Kommersant reported on Monday that the government is drafting a proposal to temporarily allow production and imports of Euro-2 standard fuel, which has been banned since 2013 due to its high sulphur content. The measure could run for one year, until July 2027. Putin promised to accelerate repairs at damaged refineries and boost output of air-defence systems, while the emergency ministry declared a state of emergency in Crimea over fuel and electricity shortages.

Expert analysis: a forced hand

Analysts suggest the president had little choice but to speak out.

“Putin is gradually being forced to publicly admit more and more about the reality of the war. In that respect, Ukraine’s long-term aim of bringing that reality home to Russians across the country is beginning to succeed.”

The International Energy Agency recently described the disruption as "unprecedented in the history of the Russia-Ukraine conflict," noting a 5% year-on-year drop in Russian crude production last month. More than a fifth of refining capacity may have been knocked offline, according to analyst estimates cited by The Independent.

Broader economic strain

The fuel crisis compounds a sluggish economy now in its fourth year of war. Ukraine’s intensified long-range drone campaign targets the very energy infrastructure that funds Moscow’s military effort. While higher global crude prices, pushed up by Middle Eastern tensions, still benefit export revenues, the domestic supply squeeze threatens key sectors like agriculture and dampens growth ambitions. The government had hoped for nearly 4% growth this year, but the refinery losses may undermine that target. Ukrainian president Volodymyr Zelensky and European leaders are pressing for renewed peace talks, seeing the economic pressure as a possible shift in Moscow’s calculus.