Russia is the second largest oil producing nation in the world, but in a strange twist of fate, the nation could soon face a fuel shortfall.
According to the Energy Ministry of Russia, by 2017 the shortage will reach a mere 5 million tonnes a year while in 2014, 38 million tonnes was produced. The shortfall is expected because of many factors, one of which is the new tax rules and the Western sanctions that are harming the oil refining businesses in Russia, forcing fuel prices up when the oil prices are falling.
Globally the fall of the prices for energy and oil products, along with the depreciation of the ruble, could affect the Russian oil-dependent economy in a negative way. The Western sanctions are also hurting the refineries and the mines, because of the prevention from using critical foreign technology.
Rosneft Igor Sechin, who is the head of the largest oil company in Russia, sent a letter to the Russian President Vladimir Putin urging him to address the issue by introducing benefits for oil refineries, something that would give a boost for investments in the oil industry and most likely increase the efficiency.