Recent drone attacks by Ukraine on Russian oil hubs and refineries are threatening President Vladimir Putin’s oil industry, which is a critical component of Russia’s economy. Gasoline production in Russia has decreased after strikes on the country’s oil refineries, with production falling by 7.4 percent in a week. To address the risk of shortages, Russia has turned to Belarus for help, increasing gasoline imports from the neighboring country.
Russia heavily relies on its oil exports and energy industry, which contribute significantly to the country’s budget revenues and funding for the war in Ukraine. The country is the world’s third-largest producer of oil, with over 12 percent of global production. In response to the invasion of Ukraine, Russia has imposed a ban on gasoline exports for six months to counter rising fuel prices within the country. Western sanctions have also impacted Russia’s energy industry.
Ukraine has escalated its drone attacks on Russian refineries since the beginning of the year, targeting key facilities like the St. Petersburg oil terminal and a gas export terminal in Ust-Luga. These attacks have caused significant disruptions, with several refineries forced to halt operations, collectively representing a substantial portion of Russia’s national oil refining capacity. The latest attack targeted the Rosneft-owned Kuibyshev mid-sized oil refinery near Samara.
The Security Service of Ukraine has claimed responsibility for the drone attacks and has indicated that they will continue, posing more challenges for Russia’s oil industry. The head of the SBU, Vasyl Malyuk, has declared that all attacks on Russian oil hubs are being conducted by their agency. The impact of these attacks on Russia’s oil industry remains to be seen, with experts noting that the speed and quality of repairs at affected facilities will be crucial indicators of Moscow’s readiness to address the situation. Russia’s resilience and ingenuity will be put to the test as it grapples with the consequences of the ongoing attacks.
