Annual inflation in Russian-occupied Crimea reached 15.79% in July, more than 2.5 times the rate recorded across Russia as a whole, according to Rosstat data reviewed by the independent outlet The Insider.
In Sevastopol, the city on the peninsula's southwestern coast that Russia also administers as a separate federal subject, annual inflation jumped from 8.8% to 14.74% in July. Russia's nationwide inflation rate stood at 5.98% over the same period.
Russia annexed Crimea from Ukraine in 2014, a move not recognised by most of the international community, and continues to claim Sevastopol, home to its Black Sea Fleet, as a separate city with federal status.
Fuel prices drive the surge
The steep rise in prices was driven largely by fuel supply and logistics problems, the data showed. In the so-called Republic of Crimea, gasoline prices rose 142.47% in July alone and 211.37% over the previous 12 months.
In Sevastopol, motor fuel prices climbed 59.36% in July and 180.76% over the year. By comparison, motor fuel prices across Russia as a whole rose 26.14% over the same 12-month period.
The Bank of Russia attributed the situation to repair works at oil refineries and difficulties delivering petroleum products to Crimea.
Fuel costs spread to food and materials
Rising fuel prices began pushing up the cost of other goods. In Sevastopol, construction materials rose 15.43% in July and 22.43% over the year. Food prices climbed 13.43% in July, compared with an average rise of 4.39% across Russia.
Egg prices rose 44.92% in July alone and 47.34% over the year. Sugar prices increased 16.42% in July and nearly 49.49% over the 12-month period.
Ukraine's own inflation rate accelerated to 7.7% in July, according to separate figures cited in the report. Egg prices fell the most, while the cost of water supply, sewage and waste removal services rose.
Multiple factors behind the crisis
Official Russian statistics point to several related factors behind the acceleration of inflation on the occupied peninsula: a shortage and sharp rise in fuel prices, more complicated logistics, higher delivery costs, reduced supply of certain products and power outages.
The logistics problems have also reduced the flow of tourists to Crimea, despite efforts to attract visitors by lowering prices at hotels, sanatoriums and boarding houses. Health resort services on the peninsula became 15.98% cheaper in July.
Export ban extended
At the end of July, Russia extended its ban on exporting diesel fuel and gasoline until the end of January 2027, though some restrictions are due to be eased from September 1.
Because of the fuel shortage across Russian regions and in occupied Crimea, authorities have begun restricting public transport services.
