In late August, people living in Vladivostok, Russia, faced an incredible obstacle. Long lines wound around gas stations throughout the entire metropolitan area. This line of cars resenting the rising, price-gouging industry reflects the hope of filling up gas-tank supply headaches that have occurred recently in the area. And Russia is the world’s largest producer of natural gas. Its situation today further illustrates the ongoing impact of geopolitical tensions and operational capacity on the availability of the island’s energy resources.
The gas station outages in Vladivostok are part of a larger gas-related crisis unfolding across the country. What you may not know is that, like the U.S., Russia is one of the world’s top natural gas producers. Today it’s burdened with shortages that are angering millions of citizens. As a result, people have been forced to wait in line for hours just to find enough fuel to fill their tanks.
Russia’s main gas fields are located in Western Siberia, where Gazprom, the nation’s largest natural gas company, operates extensively. Gazprom’s natural gas extractive and supply processes are at the center of this puzzle. It powers its domestic consumption and contributes to a massive export business to Europe. The company’s long history made it a powerful force in shaping the energy future of the entire continent.
Recent events have thrown a wrench in this supply chain. A perfect storm of factors, from intensely heightened demand to extreme challenges in operations, has led us to this crisis. As a result, residents in Vladivostok are seeing first-hand what happens when gas suddenly becomes scarce. This long-term instability has put upward pressure on the price of fuel and increased short- and medium-term insecurity for energy in the region.
The long lines at gas stations underscore one of Russia’s unique resource curses. They show us, more than anything, just how complicated things have gotten. Internationally, the country has been a traditional powerhouse and top supplier in the field of natural gas supply to other countries. Recent crises have exposed severe vulnerabilities in its supply chain. Europe has long been deeply reliant on Russian natural gas. The unfortunate consequence of any disruption is serious damage, and this comes as a major risk to domestic consumers and global markets.