NewsUkraine's strikes on Russian refineries surge fuel prices amid conflict

Ukraine's strikes on Russian refineries surge fuel prices amid conflict

Slavic Refinery on fire
Slavic Refinery on fire
Images source: © X | UK R Report

6:11 PM EDT, March 25, 2024

Further Strikes on Russian Refineries Lead to Fuel Price Hike

Further strikes on Russian refineries and fuel depots have led to a decrease in fuel production and a rise in prices in Russia. Ukrainian drones have targeted the fuel infrastructure in an attempt to halt supplies reaching the front line. As a result, production has dropped by 4 percent, while prices at fuel stations have surged by more than 25 percent.

Ukraine Targets Russian Fuel Infrastructure to Disrupt Supplies
The strategic targeting of Russian fuel infrastructure by Ukraine is designed to disrupt supplies to the invading army. This tactic mirrors similar actions undertaken by the Allies during World War II against Nazi Germany's fuel production facilities, which proved effective. Kyiv is hoping to achieve a similar outcome by employing drone attacks.
Ukraine Sparks Another Fuel Crisis for Russia
As reported by money.pl, Ukraine's strikes on refineries have cut refining capacities by an estimated 4 percent to 7 percent of fuel production. Consequently, station prices have jumped by 25 percent. The Kremlin has been forced to limit fuel sales to foreign markets to meet the increasing domestic demand.
Confirmed Attacks and Impacted Locations
In March, Ukrainian military intelligence (HUR) and the Security Service of Ukraine (SBU) confirmed attacks on several refineries including those in Slavyansk in Krasnodar Krai, Novoshakhtinsk in the Rostov region, and facilities in Ryazan, Kstovo in the Nizhny Novgorod region, and Kirishi in the Leningrad region. Additionally, Russian and Ukrainian media reported on raids targeting refineries in Syzran and Novokuibyshevsk in the Samara region, as well as a fire near a thermal power plant in Petersburg.
There have also been reports of drone attacks on industrial facilities crucial to the Russian armaments industry, including the Mikhailovsky Mining and Processing Plant in Zheleznogorsk in the Kursk region and metallurgical plants of the Severstal conglomerate in Cherepovets in the Vologda region.
Impact on Russian Refining Capacities
Reuters estimates that the drone attacks in the first quarter of 2024 took out approximately 4.6 million tons of crude oil processing capacities (an average of 370,500 barrels per day), which accounts for about 7 percent of the total processing capabilities of all plants in the country.
US Concerns Over Rising Crude Oil Prices
The US authorities have consistently stated they do not encourage Ukraine to carry out attacks on Russian territory nor assist in these operations. On March 22, the Financial Times reported that the US had been pressuring Kyiv to pause drone attacks on refineries, citing concerns over potential increases in crude oil prices on the global markets.
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