Ukraine drones and sanctions harm Russia's oil refineries

The energy sector in Russia faced significant challenges at the start of the winter season, as oil refining capacity fell by approximately one-third compared to pre-war levels in Ukraine. According to a report from the International Energy Agency, Russian oil supplies decreased to about 8.7 million barrels per day, and it is anticipated that refining capacity will reach around 4 million barrels per day over the next 18 months. This decline is attributed to Ukrainian drone attacks on processing facilities, as well as Western sanctions that restrict the import of necessary equipment and spare parts for maintenance. These restrictions have led to increased repair costs and delays in maintenance work, negatively impacting the country's oil production and refining activities. Despite efforts by the Russian government to improve the situation, data indicates that the sector is under considerable pressure, resulting in significant fluctuations in production rates. It is expected that oil output will reach roughly 515 million tons this year, amid ongoing technical issues and targeted attacks.

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