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The Russian oil production is now only able to meet less than two thirds of the domestic seasonal demand, figures show.
Russia is facing a severe energy crisis as its oil processing capabilities collapse to levels not seen in over two decades.
According to Bloomberg, successful Ukrainian attacks on fuel infrastructure have crippled the country’s refineries. The fallout is starting to impact both local drivers and global markets.
According to OPEC data, cited by Bloomberg, Russian crude oil production has dropped below nine million barrels per day, the lowest volume since February 2024.
Looking at processing volume, the figures are even worse for the Kremlin. Russian refineries processed a daily average of only 3.91 million barrels of crude.
That is the lowest level recorded since March 2005, more than two decades ago, and it is 1.4 million barrels less per day than a year ago.
Russia has the oil, but can’t use it
Oil production is the extraction of raw crude oil from the ground.
Processing (or refining) is the chemical process that turns that raw crude into usable fuels like gasoline, diesel, and jet fuel.
Ukraine’s campaign is targeting the latter, meaning Russia has plenty of raw oil but is losing the ability to turn it into fuel.
To deal with the shortage, Moscow banned most diesel exports until the end of July. This decision follows earlier restrictions on gasoline and jet fuel.
Because Russia is a major supplier, the export freeze quickly pushed global prices to multi-year highs.
Strikes hit home
At the root of the crisis is a highly effective drone campaign. Bloomberg estimated that Ukraine launched about 50 attacks on fuel facilities in just 100 days.
These raids damaged at least 24 of Russia’s 34 major refineries.
Measuring the actual destruction remains a massive challenge. Because the Kremlin classified its official fuel data, experts must find alternative ways to track the damage. To piece the story together, they are using satellite images and monitoring transport logistics.
Even Russian President Vladimir Putin has been forced to address the issue. During a recent speech, he admitted the strikes caused “certain problems with petroleum products” across the country. Still, he insists the situation is under control.
Troops feel the squeeze
The pain is already spreading directly to the front line. According to the Atesh resistance movement, Russia’s military command in southern Ukraine has started rationing fuel. This means air defense units are now facing strict supply limits.
Back home, ordinary citizens are also feeling the pinch as domestic gasoline production plunges.
Right now, local plants cover only 65% of seasonal demand, Reuters reported on July 10. Drone strikes have knocked out several of the country’s biggest refineries, leaving a massive gap that officials are struggling to fill.
