Putin moves to protect refineries with billions in subsidies amid Ukrainian drone attacks - Bloomberg
Illustrative photo: Russian refineries set to keep receiving billions from the budget (Getty Images)
Russian leader Vladimir Putin has authorized multibillion-dollar subsidies for the plants in the form of "financial assistance" amid Ukrainian drone strikes on Russian oil refineries, Bloomberg reports.
The decree significantly relaxes the rules for granting fuel subsidies to Russian refineries. This comes as Ukrainian drone attacks on refineries have become more frequent and effective.
Signed on October 11, the decree allows refineries to keep their right to subsidies even if market wholesale prices for gasoline and diesel exceed the so-called "threshold prices" set by the Russian government. The changes will take effect from October 1, 2025, through May 1, 2026.
With these adjustments, Putin aims to encourage Russian fuel producers to continue supplying the domestic market despite attractive export prices. Current rules allow subsidies if the market wholesale price for gasoline does not exceed 10% above the threshold, or 20% for diesel.
In 2024, the Russian government paid 1.8 trillion rubles in subsidies to refineries, while in the first nine months of 2025, only 716 billion rubles were disbursed. Meanwhile, Ukrainian strikes have taken plants offline and already caused a fuel crisis.
Following intensified attacks, at least 57 Russian regions have experienced the effects of the fuel crisis, accounting for more than half of all federal subjects. The situation is no better in temporarily occupied Crimea, where gasoline is rationed at 20 liters per car.
Overall, 360 gas stations closed across Russia during August and September due to the shortage. Experts calculate that roughly one in every 50 gas stations no longer sells gasoline. In response, Russian authorities have extended the ban on gasoline exports until the end of October.
