Russia's War Costs Trigger Diamond Sale and Fuel Shortage Crisis

Russia's war in Ukraine has rapidly depleted public finances, pushing the government to tap new assets. On 9 September the state‑run fund Gokhran will hold an open auction of natural diamonds weighing 10.8 carats or more, the first such sale since a six‑month gold reserve liquidation that reduced Russia's gold holdings to their lowest level since February 2020. The finance ministry says the move aims to offset a budget deficit that reached about 6 trillion roubles (over $76 billion) in the first half of 2026, while Western sanctions have frozen much of Russia's foreign‑exchange reserves.

At the same time, Russia is confronting a severe fuel shortage. Reports from southern regions and occupied Crimea describe empty petrol stations and long queues for gasoline and diesel. Repeated Ukrainian drone attacks on Russian refineries, logistical bottlenecks and the army’s heightened fuel demand have cut production. Moscow is redirecting supplies from Siberian plants, limiting fuel exports and seeking alternative imports, but analysts warn the shortage may spread to transport, agriculture and industry if unresolved.