Ukraine's Drone Strikes Disrupt Russian Fuel Supply and Refining Capacity

Fuel Shortages in Russia

• ⛽ Russia is experiencing gasoline shortages in several regions, with cars lined up at fueling stations as pumps run dry.
• 📈 Wholesale prices for top-grade petrol have reached record highs, 50% above their January level, significantly impacting family budgets.
• 🚫 Authorities have banned gasoline exports through the end of October in an attempt to lower domestic prices.

Ukrainian Drone Attacks on Refineries

• 🎯 Ukraine has intensified military strikes on Russian oil refineries, hitting 10 facilities in recent weeks.
• 🗺️ These strikes form an arc targeting refineries from Resign south of Moscow to Volgograd.
• 📊 The attacks are estimated to have disrupted 17% of Russia's refining capacity, equivalent to 1.1 million barrels of oil per day.

Impact on Russia's Economy

• 📉 The drop in refining capacity is forcing Russia to increase crude oil exports, a challenge given US pressure on India and China to reduce purchases.
• 💰 Moscow relies on energy exports for a quarter of its budget revenues, making these disruptions significant.
• ⚠️ The shortages coincide with high demand periods, including the fall harvest and the end of summer vacation travel.