Russia’s Regional Leaders Scramble to Quash Fuel Crunch Concerns

rk{2zywljf(ki8xwy0wasjgd_media_dl_1.png Bloomberg News, based on public

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(Bloomberg) — Russia’s regional authorities are scrambling to dispel concerns about a gasoline crunch in the wake of Ukrainian strikes on oil infrastructure that sparked reports of shortages at some filling stations. 

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Ukraine has stepped up attacks on energy facilities this year, forcing local leaders from the north to the south of Russia to come up with reassuring messages this week after social media users expressed concern about fuel availability.

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“Supplies are being delivered according to plan, there are no shortages,” Alexander Drozdenko, governor of the northwestern Leningrad region, said in a Telegram post this week. Individual complaints from residents are isolated cases and “do not reflect the overall situation,” he said. 

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With the invasion of Ukraine in its fifth year, Russians face increased costs of living amid an economic slowdown and high interest rates. A war that once seemed distant has now become much closer to the general population as drones reach deeper into Russian territory.

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Ukrainian attacks have reduced Russia’s daily oil-processing volumes so far in June to a 20-year low, according to estimates from analytics firm EA Analytics.

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Drozdenko oversees a region of about 2 million people that surrounds St. Petersburg, known locally as Russia’s second capital. The area came under attack at the start of this month as it played host to President Vladimir Putin’s flagship annual economic forum, with videos on social media showing black smoke from a fire at an oil terminal.

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In the Belgorod region, which borders Ukraine and has been heavily exposed to Kyiv’s attacks, acting head Alexander Shuvaev addressed the fears of shortages this week. Residents had complained on his social media account that a supplier had stopped selling fuel in cans, prompting coverage in local media and television. 

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“The gasoline situation is not unique to our region,” Shuvaev said June 8 while meeting employees at a plant. “Nevertheless, we are finding solutions.” 

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The emergency response service in the Black Sea region of Krasnodar on Wednesday also sought to reassure residents, saying only 15 of more than 1,000 gas stations had temporarily suspended fuel sales, it said. 

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The administrations of the Voronezh and Rostov regions, home to more than 6 million people combined, were also forced to deny reports of gasoline shortages.

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The statements underscore growing concern among Russia’s authorities about the risk of social unrest, particularly ahead of parliamentary elections due in September, and evoke memories of the fuel price protests that swept parts of the country in 2018. While most filling-station networks in Russia are owned by major producers that can afford to hold down retail prices, gasoline has still climbed 5.6% this year, according to Federal Statistics Service data.

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On top of that, the vacation season has started, when millions of Russian tourists flock to Black Sea areas including the occupied Crimea peninsula, often by car.