Ukrainian strikes on Russian oil refineries “burned” more than a trillion rubles of Russian budget
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Ukrainian strikes on Russian oil refineries are costing the Russian budget dearly. To support the loss-making oil industry, the Russian government is forced to burn through budget funds, even as the federal budget deficit for the first half of this year has already reached over 5.7 trillion rubles, approximately 2.5%. According to The Moscow Times, citing data from the Russian Ministry of Finance, from April to July, oil companies received 1.221 trillion rubles from the federal budget through the damping mechanism and the reverse excise tax system. In July alone, oil companies received 192.8 billion rubles in budget support. In previous months, the volume of subsidies was even higher: in April – 359.3 billion rubles, in May – 357.3 billion rubles, in June – 312.5 billion rubles. A significant portion of the budget support is due to the situation in the Russian oil refining industry caused by the Ukrainian attacks. In July, at least 18 major refineries were hit by drone strikes, and at least eight were forced to temporarily suspend production. Despite announcements of restoration work, some facilities remained idle by the end of July, which continues to put pressure on the oil refining sector. Russian experts acknowledge that these expenses, the strong ruble, and falling corporate revenues are exacerbating Russia's budget problems.
More than 30% of Russia's actual oil refining capacity has been disabled as a result of Ukrainian strikes on refineries, Financial Times informs. The newspaper reached the conclusion based on an analysis of S&P Global Energy data and satellite images of Russian oil refineries. According to the Financial Times, Ukrainian attacks have put more than 30% of Russia's actual refining capacity and over 45% of its nominal capacity out of service. Repair work at damaged facilities is progressing slowly, meaning the effects of the strikes last for many weeks and, in some cases, months. The Financial Times analysis showed that, at the time of the study, refineries in Kirishi, Tuapse, Samara and Syzran were not processing oil. Experts estimate that even after resuming operations, the facilities will need more than a year to return to previous production levels. The newspaper also noted that since the start of 2026, Russian refineries have been hit at least 194 times by Ukraine's Defense Forces. That is 11 times more than in the same period last year.
Recently, Ukrainian drones targeted an oil refinery in Russia's Yaroslavl Oblast. Videos showed a large-scale fire at the Slavneft-Yanos oil refinery in Yaroslavl, over 700 kilometers from the Ukrainian border. The facility was also attacked on August 5 also. Footage from Yaroslavl residents on Aug. 6 showed plumes of smoke rising over the city during an overnight drone attack. The independent Russian Telegram news channel Astra analyzed the footage using geolocation and determined that the Slavneft-Yanos refinery was on fire. Yaroslavl Oblast Governor Mikhail Yevrayev announced earlier in the night that Ukrainian drones were attacking the region. As a result, traffic restrictions were imposed on the road leading to Moscow. The closure affected the road out of the city from the intersection of the Southwestern Ring Road and Moskovsky Prospekt — where the refinery is located. Yevrayev made no mention of the refinery and has not reported on any consequences of the attack. Residents have also reported fires at some homes in the city following the strikes.
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