Not just oil refineries: strikes on key Russian targets deal major blow to budget

Deputy Director of the Ukrainian Energy and Natural Resources Association Andrii Zakrevskyi shared his thoughts on Espreso TV.

“Already over 38% of Russian oil refineries have stopped operating due to strikes by the Ukrainian Defense Forces. This is simply an incredible figure and a testament to the work of our Armed Forces. What I particularly like in this situation is that the Ukrainian military hasn’t forgotten about Russian ports, either. Systematic strikes on Russian ports and terminals continue to reduce Russia’s budget. The budget is also being cut due to disruptions in exports and processing. We are also targeting extraction. Thanks to these strikes, many Russian oil fields simply won’t survive this winter,” Zakrevskyi explained.

The expert emphasized that Russia is also facing significant problems in the coal industry. Over 50% of single-industry towns in Russia are already closing.

“Russians mostly extract steam, which is 90% water and at best 10% oil. The water that comes to the surface needs to be heated, and if heating costs more than the oil itself, it’s not profitable. As for coal, the war, sanctions, and changes in the energy market are shutting down 50% of single-industry towns in Russia. So, 50% of coal-dependent towns in Russia won’t survive this winter. I hope that, thanks to these strikes, even the oil towns won’t make it through this winter,” he added.

• As of Friday, September 26, global oil prices rose more than 4% over the week due to a decrease in exports from Russia following Ukrainian drone strikes on Russian energy infrastructure.