Putin Forced to Spend Billions Due to Ukrainian Attacks on Russian Oil Industry
Recent reports reveal that Russian President Vladimir Putin is compelled to alter his support policies for the oil refining sector amid intensified Ukrainian strikes targeting facilities in this industry.
Moscow has relaxed subsidy regulations, allowing oil refineries to receive billions of rubles in state support even as global fuel prices push domestically produced fuel out of competitive.
Starting from October 1 until May 1 of the following year, these measures will remain in effect, according to Bloomberg.
The Russian government aims to encourage domestic supplies, but Ukrainian attacks have disrupted the normal functioning of refineries, leading to increased fuel prices and shortages across many regions.
Ukrainian missile strikes on oil infrastructure have significantly reduced crude processing capacities—about 38% (or 338,000 barrels per day) have been idled since late September.
Production of diesel and gasoline has fallen by 6% in August and another 18% in September.
As a consequence, at least 20 regions, including annexed Crimea and occupied territories, are experiencing fuel shortages, while fuel prices in Russia continue to rise.
Experts warn that these disruptions threaten the stability of Russia’s energy sector and economy.
For more detailed analysis, read economist Oleksii Plastun’s article in ZN.UA titled “Master Class from Russia: How to Get Up from Your Knees and End Up on All Fours.”