[70582] Ukrainian drone attacks paralyze Russian oil industry: Heavy damage to refineries

The Energy War: Ukraine strikes Russia's oil infrastructure

Russia's energy infrastructure is taking a hard hit following a series of widespread Ukrainian drone strikes. According to the Оперативний ЗСУ channel, which is clearly pro-Ukrainian, Ukraine has so far attacked about 24 out of 33 Russian refineries with an annual capacity of over one million tons, with a total of 158 strikes. The report notes that almost all oil facilities in European Russia have been damaged, except for those far beyond the Ural Mountains.

One of the main casualties is the NORSI refinery of the "Lukoil" company in the Nizhny Novgorod region. According to a Reuters report cited by the UA Stream channel, the facility was forced to shut down its primary oil refining unit (CDU-6) following an attack on May 20. The DW Україна channel, which covers the war from a Ukrainian perspective, added that this unit is responsible for refining half of the plant's oil output, which is considered the fourth largest in Russia.

The consequences of the attacks go beyond physical damage to infrastructure. The UA Stream channel reports that the domestic fuel market in Russia is in distress, with gas station operators losing an average of 84 kopecks on every liter of AI-92 gasoline, the most common fuel in the country.

According to an analysis by the Institute for the Study of War (ISW), also published by UA Stream, the Ukrainian attacks have damaged or reduced the operations of refineries responsible for about 30% of total gasoline production in Russia. While Russia is experiencing these internal difficulties, the global market remains tense, with global oil prices influenced by the tension surrounding Iran, which could also impact fuel costs in Ukraine, as noted in the UA Stream review.