(Zero Hedge)—Russia has confirmed its government is currently in negotiations with other countries to purchase gasoline while desperately seeking to stabilize its domestic market after months drone mayhem out of Ukraine.
“Discussions are actively being held,” Kremlin spokesman Dmitry Peskov said at a press briefing Tuesday, though without specifying which countries. “If agreements can be reached at acceptable price points, then [imports] will move forward,” he added.
The development is surprising given that Russia remains the world’s second-largest crude oil exporter and third-largest supplier of refined petroleum products – and yet it is now facing the somewhat humiliating prospect of importing gasoline.
Last week, Reuters dropped a bombshell citing industry insiders who revealed that Moscow has been in backroom talks to import a staggering 50,000 metric tons of AI-92 grade gasoline from neighboring Kazakhstan. India has also been mentioned in reports.
President Putin just over the weekend estimated Russia’s total gasoline reserves to be at at 1.7 million metric tons, which would constitute a 4% decline compared to the same period last year. Politico notes further:
Deputy Prime Minister Alexander Novak has described imports as one of the government’s key tools for stabilizing the market, while Russian lawmakers last week approved tax changes creating subsidies to help finance gasoline purchases from abroad.
Putin had further in a speech and separate interview belatedly acknowledged Sunday that his country is facing a “certain shortage” of fuel following weeks of ramped-up drone warfare coming out of Ukraine, which has chiefly targeted oil refineries and domestic supply facilities, including in the Moscow region.
“As for strikes against critical infrastructure in general, and energy infrastructure in particular, of course, these attacks on our infrastructure facilities create problems,” Putin said. “That’s obvious.“
“Right now we’re observing a certain shortage, but it’s not critical,” he added. He also made wide-ranging public remarks at a major summit of the ruling ‘United Russia’ party.
Some Western pundits have agreed that the situation is not yet critical, and that a fuel squeeze has been a long-running Ukrainian goal of its intensified drone attacks…
A state of emergency for all citizens was also declared in Crimea last week – with fuel only being provided to military and state entities at this point.
Putin further acknowledged in his recent comments that small, slow-moving drones have proven a problem for Russia’s anti-air defense systems, which were conventionally designed to intercept large fast projectiles like missiles or warplanes.
This has been big on Russians’ minds, as this month they beheld unprecedented scenes of massive smoke plumes overtaking Moscow’s skyline, as a key refinery there burned.
