Russia is facing an oil crisis. According to the economist, Vladimir Putin cannot find an effective solution to this problem.
Since the beginning of the year, fuel prices in Russia have risen by 10 to 11 percent, which is a big change for the world’s largest producer of petroleum products. At the same time, Vladimir Putin does not understand, or pretends not to understand, why this is happening.
Fuel crisis in Russia
This advice was presented by Russian economic analyst Vladimir Milov in a conversation with journalist Michael Nucky. According to the economist, the market in Russia is dominated by state energy monopolies, which simply ignore government orders and anti-crisis measures aimed at stabilizing the fuel market in the country.
– They will continue to squeeze as much as they can out of the internal market until they are shouted directly from the Kremlin: ‘Enough, guys, enough, there is a risk of social discontent.’ Moscow took action [w celu stabilizacji rynku paliw – przyp. red.]and prices continue to rise because the market, which accounts for three-quarters of production, is controlled by four state-owned companies, Volodymyr Milov said.
The economist noted that during meetings with the government, which are broadcast on the Internet, Putin is always surprised that the situation on the fuel market cannot be stabilized. Perhaps he is doing it publicly to absolve himself of responsibility for the consequences of monopolizing the economy that he himself has created. It’s also possible that the Russian president really doesn’t understand how the economy works.
– Putin is terribly surprised. Someone finally gave him an economics textbook, Milov joked, adding that the Kremlin is essentially giving oil workers the opportunity to take money from ordinary Russians to offset losses from losing export markets.
The expert says that the increase in gasoline prices in Russia will have a direct impact on overall inflation, as fuel costs affect all parts of the economy.
Source: Do Rzeczy

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.