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European Oil Markets
4JUN

Bank of Russia holds rate and names fuel

2 min read
10:20UTC

The Bank of Russia held its key rate at 14% on 11 September and named motor fuel price rises as a driver of inflation. Annual inflation stood at 6.3% on 7 September.

EconomicDeveloping
Key takeaway

Russia's central bank named fuel prices as an inflation driver, putting the strike campaign inside official reasoning.

The Bank of Russia held its key rate at 14% on 11 September and put motor fuel price rises in the list of drivers behind both headline and underlying inflation. Annual inflation read 6.3% on 7 September, a trailing twelve-month rate, while the underlying measure accelerated to between 5 and 6% when recent months are annualised. The board attributed that to a temporary reduction in production capacity in certain sectors.

Read the wording exactly as written. The bank named a price, not an enemy. Russian ministers have blamed seasonal demand and refinery maintenance all summer, and Vladimir Putin admitted petrol queues in June without conceding a cause. What changed on 11 September is the file the fuel problem now sits in: monetary policy, set by the institution that prices borrowing for every Russian firm.

Ukraine's campaign against refining has run on claims until now, from the 2,500km strike on Omsk in July to the queues Putin conceded. The Centre for Research on Energy and Clean Air measured the Sheskharis strike cutting Novorossiysk loadings 58% month on month, and seaborne oil product export revenue falling 32% to €78mn a day. China took 16% more Russian crude over the same month, so the barrels still move even as refining at home stalls.

Deep Analysis

In plain English

Russia's central bank kept interest rates unchanged and, for the first time, pointed to rising fuel prices as part of the reason. Behind that is a real supply problem: Ukrainian drones knocked out Russia's biggest oil export terminal for nine days, cutting how much fuel and oil Russia could ship out and pushing prices up at home.

Deep Analysis
Root Causes

Ukraine's drone campaign against Black Sea export terminals is the mechanical driver: the nine-day Sheskharis shutdown from 21 August cut Novorossiysk loadings 58% month on month, and seaborne oil product export revenue fell 32% to €78mn a day, the lowest since the invasion began.

Those losses fed into the fuel-price pressure the Bank of Russia then had to name when it held the key rate at 14% on 11 September.

First Reported In

Update #27 · Russia's rate hold names the fuel shortage

Bank of Russia· 13 Sept 2026
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Causes and effects
This Event
Bank of Russia holds rate and names fuel
Ukraine's strike campaign against refining and export infrastructure has surfaced inside Russia's own monetary policy reasoning. A Russian policymaker now has to act on the fuel shortage rather than deny it.
Different Perspectives
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Money manager positioned in WTI
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Russian diesel exporter
Russian diesel exporter
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War-risk underwriter
War-risk underwriter
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Northwest European refiner
Northwest European refiner
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.