Home > Economy > Strikes on Russia's Energy and Oil Industry: Economic Impact for the Russian Federation


Strikes on Russia's Energy and Oil Industry: Economic Impact for the Russian Federation


Ukrainian attacks on Russian energy and oil infrastructure have led to fuel shortages, energy supply failures, and falling budget revenues.

In recent weeks, Ukrainian forces have continued targeted attacks on Russia’s energy infrastructure. Strikes have affected power plants in Belgorod and Klintsy (Bryansk region) and strategic facilities in occupied Crimea, including an oil depot in Feodosia. As a result, several Russian regions experienced blackouts, water supply disruptions, and tens of thousands of residents were left without electricity.

UAVs have also hit industrial facilities, such as the Sverdlov plant in Dzerzhinsk – one of Russia’s main producers of explosives. Damage has been confirmed by local officials and independent sources; the facility is under Ukrainian, EU, US, UK, Japan, and Swiss sanctions.

Beyond infrastructure damage, these strikes complicate logistics for the Russian army by worsening fuel shortages and disrupting gasoline and diesel production. Western analysts estimate up to 40% of Russia’s oil refining capacity is damaged, with about 20% permanently paralyzed, equating to a loss of over a million barrels per day and a domestic fuel shortage.

Export restrictions and efforts to import from Belarus, China, and other countries do not fully make up for the deficit. There has been notable price growth on the market, closures of gas stations, and limits set on purchases at fuel stations in some regions.

International dynamics also impact Russia. OPEC+ countries have agreed to moderate oil production growth, maintaining Russia’s average price level but not compensating for losses from sanctions and attacks. The US is actively pushing the EU to stop importing Russian oil and gas, further complicating Moscow’s export opportunities.

As a result, the Russian economy is facing a budget deficit, falling oil and gas income, and higher prices for fuel and essentials. Analysts predict further crisis development if attacks and sanctions persist, and rising social tensions within Russia.