Russia facing fuel shortages due to railway transport issues

Russian oil companies are encountering difficulties in shipping oil cargoes by rail as Russian Railways refuses to accept them for transportation, raising concerns about disruptions in domestic fuel supplies.

Source: Russian newspaper Kommersant, citing industry sources

Details: The report suggests that more than 40% of daily oil shipments are being rejected, with the average daily oil and petroleum product load falling by 16% year-on-year and by 12% compared to January.

Russian Railways claims the main reason for transport disruptions is that shippers are not presenting cargo for transportation.

The situation is particularly critical for the Samara group of refineries and the Angarsk Petrochemical Company, but other firms, including Gazprom Neft, are also facing difficulties with shipments.

Oil companies warn that this could lead to fuel shortages in the domestic market in February, as well as revenue losses for Russian Railways due to lower transport tariffs.

Background: Russia is already facing the risk of reduced oil production due to US sanctions and Ukrainian drone strikes.

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