Running out of gas? Russia halts gasoline exports

Russia has long been one of the world's major oil and gas producers. However, the war changed everything. Many believed that Russia could use natural resources as leverage against the West. But gas problems can be a two-way street.

Al Jazeera reported that Prime Minister Mikhail Mishustin (pictured) has approved a six-month ban on gasoline exports starting from March.

Reuters explains that oil, gas, and related products are by far Russia’s biggest export, representing a major source of its 1.9 trillion US dollar economy despite sanctions and other blows caused by the war and subsequent sanctions.

There are several reasons that forced Russia to make this decision. Al Jazeera writes that the measure seeks to avoid shortages and curtail a spike in prices in the domestic market, which has been increasing in demand.

The decision, Reuters points out also seems to cater to farmers and truckers working in agriculture. Russia is, after all, the largest wheat exporter in the world.

At the same time, a few Russian refineries have been hit by Ukrainian drones, affecting their gasoline output.

Yet another possibility is trying to gain votes ahead of the Russian presidential election on March 15, though it seems unlikely there will be an upset.

Al Jazeera reported that this decision won’t affect Russia’s partners in the Eurasian Economic Union, namely Armenia, Belarus, Kazakhstan, and Kyrgyzstan, plus Mongolia and Uzbekistan.

Abkhazia and South Ossetia, breakaway regions only recognized by the Moscow government and a few of Russia’s allies, are also exempt.

Reuters explains that most importers of Russian gasoline are African countries, including Nigeria, Libya, and Tunisia.

This is not the first time the Russian government has issued such a measure. Last year, a similar ban was applied between September and November to harness prices and consumption ahead of winter.

Has Russia’s economy hit a rut, finding a pace while facing a major special military, or is it a sign that Vladimir Putin is running out of fumes?