Ukraine's drone attacks hit Russia's oil industry hard!

Ukraine's drone attacks hit Russia's oil industry hard!

The current situation of the Russian economy is coming under increasing pressure. This is due in no small part to the ongoing attacks by Ukraine, which recently caused serious problems for two major oil refineries. Loud fr.de The assembly opportunities for the Ryazan and Novokuybyshevsk refineries have been severely limited, resulting in a decline of around 50% in oil production. The Ryazan refinery alone, which is the largest in the Rosneft concern, processes 13.7 million tons of crude oil annually. The consequences of these attacks could cost Russia an estimated 8% of its total oil processing output.

However, the Western sanctions are not a good thing. Not only are they limiting necessary refinery repairs, but they have also caused Russia's fossil fuel revenues to fall by a whopping 18% in the second quarter of 2025, even though export volumes have increased. Russia can at least count on India and China, who act as buyers, but not without significantly increasing the price.

The Kremlin's inability to act

The Kremlin's lack of freedom of action shows how deep the misery really goes. According to an analysis by experts, a sudden collapse of the Russian economy is not expected, but the increasing economic problems and high war spending are limiting Vladimir Putin's options. Researcher Åslund even warns that the Russian economy is quickly approaching a financial crisis, which will make it difficult for the Kremlin to continue fighting. “Savings in the civilian sector are hardly possible anymore, but the military will have to suffer from the financial hardship,” he says, recalling the dangerous parallels with the defeats of the Germans in the First World War and the Japanese in the Second World War.

But while Putin described the Russian economy as “stable” last year, the reality was that inflation and food prices continued to rise while economic output slowed. Experts like Alexander Kolyandr note that the EU's sanctions - a total of 17 packages have been approved - are putting a heavy burden on Russia, but are not having the hoped-for effect of ending the war. Sanctions alone cannot stop aggression; instead, Moscow is looking for new economic partners.

A look into the future

The situation remains tense, and even if some European countries such as Slovenia and Hungary are blocking, the prospect of possible further measures is unavoidable. The EU is planning not only an adjusted oil price cap, but also a ban on Russian gas by 2027. The challenges are manifold, and what will happen next for the Russian economy remains to be seen. However, one thing is certain: the return to normality seems a long way off and Putin's financial leeway is becoming increasingly narrow. Whether he still has the strength to maintain his military ambitions remains questionable.