Kazakhstan agrees to ship gasoline to Russia as fuel crisis deepens

Russian President Vladimir Putin acknowledged on Sunday that the country faces a "certain deficit" of fuel, marking the Kremlin's first formal admission that sustained Ukrainian drone strikes on oil refineries have created a domestic energy crisis that will likely persist through the summer.

From Denial to Admission

Putin's remarks, made during a state television interview on June 28, came after weeks of official efforts to downplay the damage inflicted by Ukraine's long-range drone campaign against Russian energy infrastructure. The president said Russia would draw on fuel reserves — which he claimed had fallen only 4% compared to last year — and expedite repairs to offline facilities.cnbc+2

The shift was abrupt. As the Associated Press AP ↘ 2.25% reported, Putin said Russia would import more fuel to end what he described as a "temporary deficit". By late June, fuel rationing had been introduced in more than half of Russia's regions, with hourslong queues forming at gas stations and strict purchase limits imposed in many areas. The Russian government established a round-the-clock situation center to monitor fuel supply.apnews+3

Import Deals With Kazakhstan and India

To ease the squeeze, Russia entered negotiations with Kazakhstan to import approximately 50,000 metric tons of AI-92 gasoline, with Kazakhstan's Pavlodar and Kondensat refineries expected to supply fuel in July and August, according to Reuters ↗ 1.04%, citing four industry sources. Kazakhstan has set conditions for the deal, including an exchange for Russian aviation fuel.arabnews+2

Separately, Moscow is preparing to import gasoline by sea from India, its largest crude oil buyer since the war began. Russia's State Duma Budget Committee has backed a plan to subsidize oil companies importing fuel from abroad, with the subsidy calculated using Indian gasoline prices and shipping costs from Indian ports.newsukraine.rbc+1

Record Crude Exports, Falling Revenue

The paradox of Russia's fuel crisis is that the country is simultaneously shipping record volumes of crude oil abroad. According to Bloomberg, the four-week average of Russian seaborne crude exports rose to 4.13 million barrels per day through June 28 — the highest level since Russia invaded Ukraine in 2022. Reuters reported that shipments from Baltic and Black Sea ports alone were projected to reach 2.7 to 2.8 million barrels per day in June.bloomberg+3

The surge is a direct consequence of reduced refining capacity: crude that can no longer be processed domestically is being shipped abroad instead. Yet falling global oil prices mean Russia's export revenue has dropped to $1.9 billion per week, its lowest since March. India's imports of Russian crude hit a record 2.70 million barrels per day in June, accounting for more than half of India's total oil imports.meduza+2