Fuel shortage in oil-producing Tatarstan and neighboring republics

Fuel shortage in oil-producing Tatarstan and neighboring republics

The reason is the Kremlin can no longer dictate its price to the market, and is forced to trade with everyone else, but not on an equal basis, unlike many other countries, Russian oil has an artificial price ceiling, set by the same countries that joined international sanctions for unleashing the aggressive war. Plus, the countries of the Arab League finally more or less agreed among themselves and began to pump more oil in order to lower prices – after all, the Kremlin no longer has time to actively influence their policies through bribery or military operations in the Middle East.

All this leads to large losses for the oil and gas superpower, it has to sell more than before. Due to the increase in exports, a deficit was created in the domestic market.  It is similar to the situation with grain during artificial famines: the Kremlin increased exports abroad to pay for wars and the construction of factories by Western specialists, while its own population was starving en masse.

The Kremlin cannot extract more oil, and no one will sell it new technologies to scale extraction even further. Oil prices will continue to fall next year. That is, either the hole in the Russian budget will continue to increase, or there will be even more active sales of oil abroad and an even greater fuel shortage.


Leave a Reply