Ukraine drone strikes trigger Russia fuel crisis, economic strain deepens
A sustained campaign of Ukrainian drone strikes on Russia's oil infrastructure has triggered widespread gasoline shortages in nearly all 83 regions, forcing rationing at many gas stations. Russia's flagship Urals crude averaged just $41.66 per barrel in early July, less than half its April peak, while oil output hit a 2.5-year low. The fuel crisis compounds deepening economic strain: a leaked intelligence report warns that 10% of corporate loans may default and that the Kremlin could seize pensions to cover war costs. The central bank flags faster inflation, delaying expected rate cuts, and rare public criticism of President Putin has emerged. Analysts describe the economy as an 'illusion' built on debt, with social unrest a growing possibility.
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