Russia should require its oil companies to refine at least 30% of their crude domestically to ease the fuel supply crunch, according to Igor Sechin, chief executive of Russia’s state-controlled firm Rosneft, which is the biggest oil producer in the country.
Sechin sent a letter to Russian President Vladimir Putin at the end of May, outlining potential measures to alleviate the fuel crisis, Russian daily Kommersant reported on Wednesday.
In the letter, Sechin proposes firms to process at least 30% of their crude oil production, as well as changes to how sales work by temporarily eliminating resellers, among other measures.
Putin has tasked Russian Deputy Prime Minister Alexander Novak to assess Sechin’s proposals and report to the President which of the measures could be implemented, according to Kommersant.
Russia’s fuel crisis intensified in May as demand rose while refinery output slumped amid incessant Ukrainian drone strikes on Russian refineries and fuel supply routes.
Ukraine has stepped up attacks on key fuel supply routes in its territories occupied by Russia, including Crimea and Mariupol. Several Russian regions have been experiencing fuel shortages since May.
Russian-installed authorities in occupied Crimea have suspended fuel sales to private individuals and businesses amid a severe fuel shortage and a weak tourist season. Only government agencies can distribute fuel in the region.
On federal level, Russia moved to authorize some refineries to produce gasoline and diesel with higher sulfur content and other lower environmental specifications in a bid to alleviate the fuel shortages.
Early this month, Russia banned exports of jet fuel through November 30, 2026, as it looks to ensure domestic supply amid intensifying Ukrainian drone attacks on the Russian refining infrastructure.
Russia is also considering a full ban on diesel exports, Alexander Novak said on Tuesday, as authorities scramble to stabilize the domestic fuel market amid refinery disruptions, rising prices, and supply shortages linked to Ukrainian attacks on energy infrastructure.
By Charles Kennedy for Oilprice.com
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