
Ukraine Drone War Pushes Russia's Fuel Market Toward the Brink
Ukraine’s drone strikes have battered Russia’s fuel sector, with refining output down about 25% in June to 3.91 million barrels per day and gasoline and diesel production dropping 17% and 35% year over year, respectively, leading to shortages, long lines at gas stations, and rising inflation. Moscow is exploring imports from Belarus, Kazakhstan, and India to bridge the gap, and may allow lower-grade fuels, but these measures risk environmental harm and do not fully offset demand. The government’s price-damping scheme keeps pump prices stable, yet drains the budget and may deepen shortages as attack campaigns intensify and spread to more facilities, potentially impacting agriculture, logistics, and broader economic stability.)













