Russia may become 60% dependent on fuel imports - Foreign Intelligence Service

Due to the systemic degradation of the energy sector, russia may cover up to 60% of its fuel needs only through imports by the end of the year. This was reported by the Foreign Intelligence Service of Ukraine (FIS).

According to intelligence, russian oil refineries, concentrated mainly in several industrial centers of the European part of the country, remain backward in technology and production structure.

"When some of these plants stopped working, the country actually lost a significant part of its domestic capacity. Without at least six months of repairs in calm conditions, russia may find itself dependent on fuel imports by up to 60% by the end of the year," the FIS noted.

The ban on gasoline exports introduced in September only exacerbated the crisis, since foreign sales previously compensated for chronic losses and partially financed the modernization of the industry.

"Without foreign exchange earnings, enterprises are deprived of resources for renewal, and price regulation in the domestic market creates an artificial deficit," the intelligence service added.

The FIS also warned of the spread of problems beyond the fuel sector: rising gasoline prices affect the cost of transportation and consumer goods, which, combined with the increase in VAT, can lead to a sharp acceleration of inflation.

"The temporary measures that Moscow is resorting to only emphasize the impasse of the situation. Imports of gasoline from Belarus and China are not able to compensate for losses, and attempts to increase the octane number with chemical additives can reduce the quality of fuel and cause technical problems. As a result, instead of stabilization, the russian authorities receive another front of economic risks - domestic, expensive and uncontrolled," the intelligence service emphasized.

As Ukrainian News Agency earlier reported, the aggressor country of russia earned RUB 582 billion from the sale of oil and gas in September this year. This is almost a quarter less than in September last year. In August, the Foreign Intelligence Service of Ukraine reported that the russian leadership was preparing for a scenario of oil prices falling to a "shocking" USD 40-60 per barrel.