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Ukraine has damaged an important pillar of the Russian economy in recent attacks. Putin has to contend with significant losses.
Moscow – Oil refineries have become a frequent target of Ukrainian attacks – to the annoyance of Vladimir Putin. The Ukrainian armed forces are increasingly looking for ways to harm the Russian economy. “The SBU (Security Service of Ukraine) has once again proven that it has powerful technological solutions that can inflict painful blows on the enemy,” quoted The Kyiv Independent a source in a post dated May 9, 2024. Russian refineries and oil depots are not safe “even deep inside Russia.”
Russia’s economy is suffering from attacks from Ukraine
Within 24 hours, Ukraine attacked two oil depots and a refinery across Russia, including one deep inside Russian territory in Bashkortostan, officials from both sides said Thursday (May 9, 2024). Radii Faritovich Khabirov, head of the Republic of Bashkortostan, confirmed the attacks. He added according to the Moscow Times added that the Gazprom Neftekhim Salavat plant that was hit was the tenth largest refinery in Russia. Despite the attack, operations will continue “normally”.
According to one of the Kyiv Independent According to a source interviewed, the SBU had attacked two oil depots in the Russian Krasnodar region on the same day. Attacks of this kind have been repeated in the Ukraine war for several months. According to a news agency source Unian became in a Ukrainian attack in April 2024, apparently, among other things, Rosneft oil storage facilities in Yartsevo and Razdorovo met in the Smolensk region.
Experts interpret the latest attacks according to the New York Times as a sign that Ukraine is attempting to restrict Russian military combat operations by attacking facilities that supply fuel for tanks, ships and aircraft.
Losses for Russia’s economy: Ukrainian attacks target energy sector
In addition, Ukrainian officers hope that the attacks will disrupt Russia’s energy supply and reduce profits for Putin’s war chest. Revenue from the oil and gas sector accounts for around a third of the entire Russian budget.
In addition to the Ukrainian attacks, Western sanctions are also making it more difficult for Putin to do business in the energy sector. In April 2024, government revenue from the oil and gas business fell again. They fell 6 percent compared to the previous month to 1.23 trillion rubles (12.5 billion euros), according to Finance Ministry data published on Monday (May 6).
Sanctions against Russia’s economy
The EU has set a price cap for Russian oil in order to force Russia, together with international partners, to sell oil to buyers in other countries below market prices in the future. The price of around 57 euros per 159 liters would then be up to nine euros below the most recent market price for Russian Urals crude oil.
Consequences for Russia’s economy: Putin suffers losses in the oil business
Due to concerns about secondary sanctions, important oil buyers and trading partners have also distanced themselves from Russia. India is buying more oil from the USA. American oil shipments to India rose sharply in March, according to data from crude oil tracking firm Kpler. At the same time, Russian oil imports have fallen by about 800,000 barrels per day since peaking last year, as Bloomberg-Show data.
Loud Reuters U.S. officials emphasized that Putin’s profits would be limited by restricting Russia’s ability to sell oil. However, they also noted that refined Russian oil sold to Western countries does not violate the sanctions. The USA also did not explicitly ask India to reduce Russian oil imports. (bohy with material from Reuters)