MOSCOW, Aug 25 (Reuters) – Ukraine has intensified its drone operations targeting Russian oil refineries and export terminals, striking a vital component of President Vladimir Putin’s economic foundation as diplomatic efforts for peace emerge.
These strikes have interfered with Russia’s domestic fuel processing and export activities, contributing to localized gasoline shortages and reflecting Kyiv’s strategy to retaliate against Moscow’s military advances and attacks on Ukrainian energy infrastructure.
Analysts suggest that Kyiv aims to strengthen its position ahead of potential negotiations, challenging narratives of Ukrainian defeat following recent high-level talks between U.S. President Donald Trump and Putin in Alaska.
According to Reuters estimates, Ukrainian drone assaults have affected at least 10 facilities, disrupting approximately 17% of Russia’s refining capability—equivalent to 1.1 million barrels per day.
The ongoing campaign has redirected more crude oil toward international markets, complicating U.S. efforts urging nations like China and India to limit imports from the world’s second-largest oil exporter.
The timing coincides with peak domestic demand in Russia, driven by seasonal travel and agricultural activity. Even prior to the attacks, Moscow had tightened restrictions on gasoline exports in July due to rising internal consumption.
Shortages have been reported in regions including southern Russia, parts of Russian-controlled Ukraine, and even the Far East. Motorists in areas like Sevastopol, located in Crimea annexed by Russia in 2014, have been forced to switch to pricier fuel grades due to scarcity of standard A-95 gasoline.
“We will endure, but this is a big hit to our family budget, a big hit. It’s really noticeable,” said Svetlana Bazhanova, a resident of Sevastopol.
In Vladivostok, long lines formed at fuel stations, attributed by local officials to increased tourism. While refineries have not been fully disabled, partial capacity losses could strain fuel availability, warned Sergei Vakulenko, a senior fellow at the Carnegie Russia Eurasia Center and former Gazprom Neft employee.
Oil and gas exports account for roughly a quarter of Russia’s state budget, financing a 25% increase in defense spending this year—the highest since Cold War levels. Despite Western sanctions forcing discounted oil sales and loss of European gas markets, Moscow continues producing record volumes of military hardware, U.S. military officials note.
The conflict has evolved into a war of attrition, with both sides launching long-range drone and missile attacks to undermine each other’s economic stability.
Russia’s economy has so far weathered international penalties, though slowing growth has raised concerns within the Kremlin. Over the past month, Ukrainian forces have targeted key facilities including Lukoil’s Volgograd plant, Rosneft’s Ryazan refinery, and others in Rostov, Samara, Saratov, and Krasnodar.
A fire continued to burn at the Novoshakhtinsk refinery on Monday following a drone strike.
— news from Reuters
— News Original —
Russian oil refineries, terminals burn as Ukraine hits Putin’s war economy
MOSCOW, Aug 25 (Reuters) – Ukraine has stepped up drone attacks on Russian oil refineries and exporting infrastructure, striking the most important sector of President Vladimir Putin ‘s economy to show it can fight back as the United States seeks to broker a peace deal. n nThe attacks disrupted Moscow ‘s oil processing and exports, created gasoline shortages in some parts of Russia and came in response to Moscow ‘s advances on the front lines and its pounding of Ukraine’s gas and power facilities. n nSign up here. n nKyiv ‘s move is an attempt to raise the stakes in possible peace talks and challenge the idea that Ukraine has already lost the war after U.S. President Donald Trump and Putin met in Alaska this month, analysts have said. n nUkrainian attacks on 10 plants disrupted at least 17% of Russia ‘s refinery capacity, or 1.1 million barrels per day, according to Reuters calculations. n nThe drone war has pushed more crude towards exports from the world ‘s No.2 oil exporter at a time Washington is pressing China and India to reduce purchases of Russian oil. n nThe refinery hits come as Russia ‘s seasonal demand for gasoline from tourists and farmers peaks. n nRussia had tightened its gasoline export ban in July to deal with a spike in domestic demand even before the attacks. n nThere were shortages of gasoline in some areas of Russian-controlled Ukraine, southern Russia and even the Far East, forcing motorists to switch to more expensive petrol due to shortages of the regular A-95 grade. n n”We will endure, but this is a big hit to our family budget, a big hit. It ‘s really noticeable,” said Svetlana Bazhanova, a resident of Sevastopol, the largest city in Crimea which Russia annexed in 2014. n nTOURISM DEMAND n nRussia ‘s far eastern port of Vladivostok saw long car queues at gasoline stations, according to a Reuters reporter. The shortages are due to a seasonal influx of tourists, local authorities said. n nThe affected refineries have lost only part of their capacity but this could still create problems with domestic fuel supplies, said Sergei Vakulenko, a senior fellow at the Carnegie Russia Eurasia Center, who previously worked at Russian oil major Gazprom Neft. n nRussia relies on oil and gas exports for a quarter of its budget revenues, which are funding a 25% rise in defence spending this year to the highest levels since the Cold War. n nWestern sanctions have forced Moscow to sell oil at discounts and stop gas sales in most of Europe. This has not deterred Moscow from producing record numbers of artillery and weapons, according to U.S. military generals. n nThe war in Ukraine has become a battle of attrition with both Russia and Ukraine using drones and missiles to strike far behind the front lines to damage each other ‘s economies. n nSo far, Russia ‘s economy has coped with the sanctions but growth has slowed raising concern in the Kremlin. n nIn the past month, Ukraine has attacked Lukoil ‘s Volgograd, Rosneft ‘s Ryazan and a host of other plants in the Rostov, Samara, Saratov and Krasnodar regions. n nA fire at Russia ‘s Novoshakhtinsk refinery was still burning on Monday after a Ukrainian drone strike. n nReporting by Reuters in Moscow; Writing by Guy Faulconbridge; Editing by Sharon Singleton