Russia is benefiting from higher global oil prices, but its domestic fuel sector faces mounting pressure. In a recent Dagens industri article, Henrik Wachtmeister examines how Ukrainian attacks on Russian refineries are disrupting the country’s ability to produce fuel.
The damage creates an unusual challenge for one of the world’s largest oil producers. Russia may earn more from selling crude oil when global prices rise. Yet damaged refining capacity can leave the domestic economy short of gasoline and other petroleum products.
Henrik Wachtmeister on Russia’s Fuel Challenges
“Russia is under pressure now,” Henrik Wachtmeister, an Associate Professor at Uppsala University, told Dagens industri. His research focuses on global energy systems and Russian-European energy relations, including the effects of policy measures on Russian oil and gas revenues.
The growing pressure reflects the difference between producing crude oil and refining it into usable fuels. Continued damage to refineries can therefore create domestic shortages even when Russia maintains significant crude production.
If domestic refining cannot meet demand, Russia may need to turn increasingly to foreign suppliers. Imported fuel, however, can come with significantly higher transportation and logistical costs.
Oil Revenues and Russia’s War Economy
The situation exposes a complex vulnerability in Russia’s energy-dependent economy. Higher oil prices can strengthen export revenues and provide additional income to the Russian state. At the same time, sustained refinery disruptions can increase costs inside the country and place pressure on domestic fuel supplies.
This dynamic also matters for Western sanctions policy. Measures targeting Russian energy revenues seek to reduce Moscow’s ability to profit from oil exports without creating a major global supply shock. Disruptions to refining add another source of economic pressure by targeting Russia’s ability to turn crude oil into products needed at home.
To explore the full article and Henrik Wachtmeister’s analysis, read the Dagens industri article, “Bränslekrisen pressar Ryssland hårt.” The article examines how refinery disruptions, fuel shortages, and potentially costly imports are affecting Russia’s energy economy.
Sanctions and Russia’s Energy Sector
For more analysis of sanctions, energy markets, and Russia’s economic response, explore the Sanctions Timeline for a chronological overview of Western sanctions and Russian countermeasures. The Evidence Base features recent research on sanctions effectiveness and economic policy.
