Russian oil refining hits 2005 low amid drone attacks

Russia’s oil refining capacity has collapsed to its lowest level in over two decades following a sustained Ukrainian drone campaign targeting the nation’s fuel infrastructure, triggering a severe domestic fuel crisis and disrupting global energy markets. According to industry analysts, crude processing has averaged approximately 3.9 million barrels per day so far in July, the lowest level since March 2005 and a drop of more than 1.4 million barrels daily compared to a year ago.

The crisis stems from a series of Ukrainian strikes that have damaged at least 24 of Russia’s 34 major refineries in about 50 attacks over the past 100 days, according to tallies of public statements. Ukrainian officials have stated the campaign is designed to pressure Moscow into negotiations, while a Kremlin spokesperson dismissed the initiative, saying Russia would respond by seeking to capture more Ukrainian territory. The attacks have disabled a significant portion of Russia’s refining capacity, with Ukrainian military claims putting the figure at over 40 percent.

The collapse in fuel production has forced the Russian government to implement a series of export bans, including a restriction on most...