NewsUkrainian drone attacks on refineries spark fear of global oil price hike

Ukrainian drone attacks on refineries spark fear of global oil price hike

Russian dictator Vladimir Putin

Images source: © PAP | EVGENIA NOVOZHENINA

12:19 PM EDT, May 10, 2024

At least five Russian regions have experienced drone attacks on oil refineries overnight from Thursday to Friday, as reported by the independent newspaper "The Moscow Times." In one impactful instance, Ukrainians ignited a fire in an oil processing facility in the Kaluga region, located southwest of Moscow.

Governor Vladyslav Shapsha confirmed the incident on Friday, May 10. He revealed that three diesel and one heating oil tank were set ablaze. Although officials managed to extinguish the fire quickly and reported no injuries, locals near the plant reported hearing explosions, followed by the sound of drones, indicating a substantial blaze that was not contained until Friday morning.

Ukrainian drone strikes impact Russian gasoline production

Russian media sources have indicated that Ukrainian drone attacks on oil refineries have led to a decline in gasoline production within the country, according to "The Moscow Times". Data from Rosstat show a significant 14.3 per cent drop in gasoline production year-on-year from March 18 to March 24, with a 7.4 per cent decrease from the preceding week.

By targeting these refineries, Kyiv is strategically aiming to disrupt the Putin regime's export of petroleum products and its logistical support for operations at the Ukrainian front line. The USA, however, views this tactic with concern due to fears of rising raw material prices.

Despite US reservations, the American magazine "Foreign Affairs" suggests that Ukraine's continued assaults on Russian refineries are a justified and effective means of applying pressure on Moscow, comparable to the impact of sanctions on the Russian energy sector.