Сергей Кагермазов

Residents across Crimea describe prolonged electricity and water outages, fuel shortages, disrupted communications and repeated drone attacks on energy infrastructure in July 2026. Ukrainian strikes intensified in response to Russia’s attacks on Ukraine’s energy system, while Russian authorities imposed emergency restrictions and offered a one-time payment of 15,675 rubles to some affected residents. Residents say assistance is difficult to obtain and inadequate, while businesses face major losses and unclear compensation rules. Generators, volunteer deliveries and mutual aid have helped communities cope, but vulnerable people, rural residents and businesses remain at risk, with many focused only on getting through each day.

Russia faces a deepening fuel shortage that is disrupting transport, raising business costs and threatening higher inflation, compounding an already weakening economy marked by declining industrial output, shrinking investment and widespread small‑business closures driven by higher taxes and restrictions. Analysts warn that the budget deficit has widened sharply as oil and gas revenues fall, leaving limited liquid reserves and pushing officials toward unpopular measures such as further tax hikes, borrowing or spending cuts. The economy remains heavily militarized, with civilian sectors stagnating and labor shortages intensifying. Experts argue that without changes in the course of the war and the associated spending priorities, economic deterioration will continue and long‑term growth prospects will remain weak.