Summary
Highlights
Due to ongoing drone attacks on its refineries, Russia faces severe fuel shortages and is forced to import gasoline and diesel from countries like India—often made from its own crude oil.
The current supply chain is highly inefficient, involving shipping crude 5,000 miles to India, refining it there, and shipping it back. This causes Russia to lose out on refining profits, taxes, and domestic employment, while also incurring massive transportation and logistical costs.
Russia is nearing the peak summer period for travel and agriculture, placing immense pressure on fuel supplies. With limited refinery capacity and ongoing sanctions, the country is facing the early signs of fuel rationing and potential long-term economic damage that could persist throughout the year.