Kremlin is exploiting problems in Crimea to pressure population, Ukraine's Defence Intelligence says

July brought a prolonged blackout, fuel shortages, and rising prices for petrol and food to Crimea, along with the closure of catering establishments, but Russia is also using these hardships as a lever for additional pressure on the local population.

Source: Defence Intelligence of Ukraine (DIU)

Quote: "Problems with fuel, electricity and water supply are worsening in temporarily occupied Crimea, which Russian invaders turned into a military base after 2014.

July 2026 brought a prolonged blackout across the entire peninsula for the occupiers in Crimea. For example, in the week from 14 to 20 July, around 1.4 million consumers on the peninsula were simultaneously left without power."

Details: Power outages were recorded in Dzhankoi, Yany Kapu and Armiansk for at least eight of the 10 days following the start of the blackout, and for seven days in Sevastopol. Water was cut off for seven days in Alushta, six in Simferopol, and five in Yevpatoriia during the same period.

In some settlements, power was out for more than 10 days; in Yevpatoriia, electricity was unavailable during the day from 2 July, returning at night for only four to five hours.

Petrol at filling stations in most districts of temporarily occupied Crimea appeared only once every two to three days in July. The shortages led to queues exceeding a kilometre and the price of a litre of AI-95 petrol reached RUB 269 (US$3.35) at the pump and up to RUB 300 (US$3.73) from resellers.

"According to the aggressor state's own statistics agencies, fuel prices in temporarily occupied Crimea and Sevastopol rose by 18% and 25% respectively compared with the average price in Russia," DIU said.

Food prices on the peninsula have also risen. Some products in Crimea cost significantly more than, for example, in Russia's Krasnodar Krai: kefir costs 167% more, eggs 149% more, and white bread 131% more.

"Just a year ago, in July 2025, the situation was the opposite – bread, eggs, buckwheat and rice were cheaper on the peninsula than in Russia," DIU notes.

In the first half of 2026, 398 catering establishments closed in temporarily occupied Crimea – 42.1% more than the previous year. Sales for some producers fell by 70%, forcing them to seek buyers on marketplaces and retail chains outside the peninsula.

Property rental in occupied Crimea has fallen sharply due to a lack of demand. For example, daily rental rates on the peninsula's southern coast have dropped by 30-50%, long-term rental prices in Simferopol have fallen by around 13%, and flats that used to be rented out within days now sit empty for weeks.

Due to the large number of Russian military facilities on the peninsula, which are periodically subject to legitimate strikes by Ukraine's defence forces, as well as the crises with fuel, electricity, water and internet access, tourists are avoiding Crimea, and many tenants are returning to Russia.

The occupying administration has responded with stopgap measures: subsidies, preferential loans, payment deferrals and a 75% reduction in rent for state property.

DIU stresses that genuine normalisation of life and an end to the crisis in Crimea are only possible once the peninsula is fully liberated.

Quote: "Moscow is not genuinely concerned about the negative consequences for the local population in Crimea resulting from its criminal war against Ukraine. The priority for the Russian occupying administration on the peninsula amid the crisis remains ensuring the Russian military grouping is supplied with matériel and human resources."

Details: As an example, DIU cites the situation in the Dzhankoi district, where, in order to receive a one-off compensation payment for being without power and water for over 48 hours, men are now being required to show proof of military registration.

This requirement also applies to women with medical training, even though such proof does not appear on the official list of "documents" needed to receive the payment from the occupation administration.

"In other words, so-called humanitarian aid is being used by the aggressor state as a lever of additional pressure on the local population of Crimea," DIU notes.

Background:

• A fuel crisis is deepening in Russia and the occupied territories amid continuing Ukrainian strikes on oil refineries. Fuel shortages previously reported in occupied Sevastopol and Crimea have spread to the Moscow region.
• The energy situation in Crimea is worsening due to strikes by Ukraine's defence forces on energy facilities, with regions regularly left without power, sometimes for several days, and most areas lacking even outage schedules.
• The occupying authorities have declared a regional state of emergency in Crimea and Sevastopol.
• Crimea has dropped out of Russia's top 10 most popular tourist destinations: a deepening fuel crisis on the peninsula has led to the cancellation of hotel bookings.

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