Ukrainian strikes on Russian oil refining facilities in July knocked out a large portion of them. Crude oil processing has since fallen to its lowest level since 2002.
In July, Russia's crude oil processing volume averaged 3.6 million barrels per day, about a third below the seasonal norm. Due to Ukrainian attacks on oil plants in Russia, they have reduced processing to the lowest level since May 2002, Bloomberg reported on Monday, August 3, citing data from EA Analytics.
"Russia's efforts to strengthen its air defenses may partially reduce the number of drones reaching the target, but they will not be able to completely protect them," said Sergey Vakulenko, a senior fellow at the Carnegie Berlin Center for the Study of Russia and Eurasia.
At least 30 attacks on oil plants
According to the agency, in July, major Russian oil refineries and oil tankers, as well as the entire pipeline and maritime infrastructure, were attacked at least 30 times. This is the second highest number of strikes in a month since the start of Russia's full-scale invasion of Ukraine, the agency notes.
In the first half of July, the main targets of Ukrainian strikes were oil refineries, which forced Russian producers to sell almost record volumes of crude abroad, as a number of oil refineries went out of service.
Ukrainian strategy changed in July
In the second half of July, Ukraine shifted its attention to Russian tankers and maritime infrastructure, Bloomberg journalists note. Ukraine's armed forces continued to attack tankers in the Black Sea and the Sea of Azov, disrupting supplies from Russia's southern ports.
In response to the increased attacks, the Russian Defense Ministry warned ships that the Black Sea was unsafe for shipping and that there were risks to one of the key oil export routes.
Russia does not have full protection for these facilities
Russia has "some opportunities" to redirect oil from Novorossiysk to Baltic ports, according to Jorge Leon, senior vice president and head of geopolitical analysis at Rystad Energy AS. However, these ports are also vulnerable to disruptions due to Ukrainian attacks, the expert said.
Earlier, on July 23, the 21st package of EU sanctions against Russia came into force. These measures are aimed, among other things, at limiting the Russian budget's revenue from oil sales. According to EU authorities, these funds help Moscow continue to finance Russia's aggressive war against Ukraine.