August M
Ukraine’s drone campaign targeting Russian oil infrastructure is causing mounting financial losses for Moscow’s energy sector. Repeated attacks on refineries and production facilities have disrupted operations and strained Russia’s domestic fuel supply.
New estimates suggest the damage is costing the industry billions while undermining one of the Kremlin’s key sources of war funding, reports United24Media.
Billions in losses
Ukrainian drone strikes on Russian oil facilities have caused more than 1 trillion rubles ($12.3 billion) in combined losses, according to reporting by The Moscow Times cited by United24 Media.
The figure includes both direct damage to infrastructure and the wider financial impact from disrupted production and lost profits.
Direct physical destruction alone accounts for over 100 billion rubles (about $1.2 billion), while operational disruptions have further reduced refining activity across the country.
Refining output drops
Russia’s oil refining volume declined by 1.7% in 2025 as repeated attacks forced some facilities to suspend operations.
Pipeline deliveries of crude oil to domestic refineries also dropped sharply, reaching the lowest level in about 15 years.
According to Bloomberg calculations cited by United24 Media, Ukraine carried out at least 120 strikes on Russian oil infrastructure during the year, including 81 attacks specifically targeting refineries.
Insurance crisis emerges
The growing number of attacks has also triggered difficulties in Russia’s insurance sector.
Insurers covering risks such as terrorism and sabotage are reporting loss ratios exceeding 100%, meaning the companies are paying out more in compensation than they receive in premiums.
Major Russian insurers including Soglasie and SOGAZ say claims have surged dramatically, with the average payout for a refinery strike reaching hundreds of millions of rubles.
Drone swarms overwhelm defenses
Industry analysts attribute the rising damage in part to Ukraine’s evolving tactics.
The use of large drone swarms has allowed attackers to overwhelm local air defenses and increase the likelihood of successful strikes.
Russian Defense Minister Andrei Belousov said in December 2025 that Russian air defenses intercept about 97% of the roughly 3,700 drones launched by Ukraine each month.
However, Ukraine’s Security Service (SBU) offers a different assessment. Its chief, Vasyl Maliuk, said Ukrainian forces carried out around 160 successful strikes against Russian oil production and refining sites in 2025.
Fuel shortages and export ban
The campaign has also disrupted Russia’s domestic energy market.
At one point, drone strikes temporarily disabled more than 13% of the country’s refining capacity within a few weeks.
The sudden drop in production forced the Kremlin to impose a six-month ban on gasoline exports in an effort to stabilize prices and prevent shortages for the military.
Repairs have been slowed by sanctions affecting Western-made refinery equipment, prolonging outages at several facilities.
Sources: United24 Media, The Moscow Times, Bloomberg
