15 Russian Regions Resume Unrestricted Fuel Sales as Refinery Attacks Ease

Key Facts

Fifteen Russian regions resumed unrestricted fuel sales in October, including the Crimean Peninsula and Sevastopol, where conditions had been among the most difficult, according to a report published on October 29 by the Kyiv Independent, citing Russia’s Izvestia newspaper. Restrictions were eased after Ukraine reduced the pace of its attacks on Russian refineries amid pressure from U.S. President Donald Trump, the Kyiv Independent said. The return of unrestricted sales in those regions points to an improvement in local supplies after disruptions over the summer. But restrictions remain in other Russian regions, making the recovery uneven. The newspaper said some areas have yet to overcome the shortages that prompted authorities to limit fuel purchases.

Russia’s fuel crisis intensified in mid-summer after Ukrainian strikes disrupted oil refineries, leading to long lines at filling stations and limits on purchase volumes, the Kyiv Independent said. The International Energy Agency said diesel production fell by about 30% during the crisis, and some drivers waited as long as 40 hours to refuel, the Associated Press reported. Russian President Vladimir Putin estimated on October 1 that refinery strikes had cost Russia about 1% of its gross domestic product, the agency said. The attacks targeted a key source of Russian budget revenue as well as affecting fuel production, according to the Kyiv Independent. The Associated Press report, citing the International Energy Agency, also said some refineries had been hit as many as 15 times since the start of the war, and one refinery had been struck once every three days in recent months.

The improvement in supplies coincided with increased refinery activity in the second half of the month. Three oil industry sources estimated to Reuters that crude processing rose by about 25% in the second half of October compared with the start of the month, after repeated attacks stopped; MarketScreener carried the report. Processing reached about 5 million barrels per day, according to the same sources. Diesel output also rose by at least 50,000 tonnes per day in October, to 225,000 tonnes per day, according to the sources cited by Reuters. Russian Deputy Prime Minister Alexander Novak said refineries had begun restarting units quickly, attributing this to most of the equipment needed by the oil and gas sector being made domestically.

Ukrainian President Volodymyr Zelenskyy said Ukraine halted attacks on Russian refineries for three days after Trump announced a unilateral energy truce on October 11, according to the Kyiv Independent. The report did not describe the announcement as a mutual agreement between Moscow and Kyiv. Russia continued striking Ukrainian energy facilities during the truce, the newspaper added. It said the two latest Ukrainian attacks on Russian facilities were at the Ryazan refinery on October 15 and in St. Petersburg on October 18. The Associated Press reported that Trump urged Ukraine on September 13 to stop targeting refineries, while Russia banned diesel exports, which the agency said pushed global prices higher.

Domestic restrictions still reflect ongoing supply difficulties in some regions, despite the resumption of unrestricted sales in others. In Tambov Oblast, authorities maintained limits on the amount of fuel an individual could buy and banned filling containers, according to the Kyiv Independent. Supply difficulties also continued in some areas of Leningrad Oblast, the newspaper said. Ukraine’s Defense Ministry said recent strikes had disrupted 51% of Russia’s oil refining capacity, citing an assessment by intelligence agencies, the General Staff and the Defense Ministry, according to an Associated Press report. The agency said it could not independently verify the claim.

The S&P Global manufacturing Purchasing Managers’ Index reading for Russia is due on November 2, according to the Trading Economics calendar. The previous reading, for September, was 49.8 points. The available source did not establish a forecast for the new reading, so the published data do not include an estimate of its level. The release is scheduled after refinery activity and diesel output improved in October, while fuel restrictions remained in some regions. The new reading will be the next economic indicator on Russia’s data calendar.