Rising oil prices have been a relief for Russia’s finances, but they’ve given the Kremlin a headache in the form of higher gasoline prices, hitting already-struggling consumers and fueling inflation.
Struggling to control the increases, the government summoned oil executives for a meeting on the issue late Wednesday. In the face of threats from top officials to limit lucrative exports -- what Deputy Prime Minister Dmitry Kozak called “extraordinary measures” -- the industry executives agreed to keep wholesale prices from rising any further and boost local supplies. But few think the relief will last.
