Kremlin Confirms Talks on Gasoline Imports from Abroad

Moscow confirmed on Tuesday that it is negotiating with other countries to purchase gasoline in an effort to stabilize the domestic market, according to the Moscow Times. The market was hit by a series of Ukrainian drone attacks on oil refineries, which led to the introduction of a rationing system. Kremlin spokesman Dmitry Peskov declined to name specific countries.

Reuters had previously reported on negotiations with Kazakhstan, but Kazakhstan has denied this for now.

President Vladimir Putin acknowledged the fuel shortage, noting that gasoline reserves had fallen by 4% year-over-year to 1.7 million metric tons. Russia, otherwise the world's leading exporter, has seen a 25% drop in gasoline production due to refineries being taken offline.

The shortages come at a critical time during the summer vacation season and the agricultural season. Deputy Prime Minister Alexander Novak described imports as a key measure, and the State Duma has already approved tax changes to facilitate government subsidies for fuel purchases from abroad.

The average price of gasoline in Russia has risen by 9.8% since the beginning of the year, reaching 71.20 rubles per liter ($0.92) as of 22 June. Prime Minister Mikhail Mishustin subsequently ordered the Federal State Statistics Service to suspend weekly public reports on fuel prices. Rosstat, however, said it would continue to publish retail data.

(max)