Fuel Crisis Forces Russian Logistics Firm to Shrink Operations

The logistics sector in Russia, led by companies like Logistic Performance, faces challenges due to soaring fuel costs following Ukrainian drone strikes on Russian oil refineries. This has led to increased freight rates, with companies scaling back to shorter routes amidst trucking cost hikes and fuel shortages, especially in Siberia.

Logistic Performance, a key player in the Russian logistics sector, is struggling to cope with soaring fuel costs. The company was forced to reduce its geographical footprint following a dramatic 16% to 18% rise in fuel prices due to Ukrainian drone strikes on Russian refineries, according to Commercial Director Valeria Savenkova.

The strike-induced price hikes have seen freight costs increase by 4.5% to 5.5%, prompting the firm to refocus operations on shorter routes within the Moscow region, abandoning long-haul routes. Despite Russia's vast railway network, over 70% of cargo was transported by road in early 2026, exacerbating inflationary pressures.

Authorities report some easing in summer fuel shortages, yet regions such as Siberia and areas near China still reel from disruptions. The acute phase of the crisis in July saw freight rates spike by up to 50% on specific routes, with the cost of shipments from China surging dramatically.