00:00Ukraine's campaign against Russian oil infrastructure deepens economic crisis.
00:05Ukraine's systematic campaign of long-range strikes against Russia's oil-refining infrastructure
00:10deepens economic crisis. Ukraine's systematic campaign of long-range strikes against Russia's
00:16oil-refining infrastructure is inflicting lasting damage on the country's economy,
00:21forcing Moscow to allocate billions in subsidies while budget deficits widen.
00:25According to a Financial Times analysis published in July 2026, Ukrainian attacks have knocked out
00:32more than 30% of Russia's actual refining capacity and over 45% of its nominal capacity,
00:38triggering Russia's worst fuel crisis since the collapse of the Soviet Union.
00:43Massive Budget Subsidies for the Oil Sector
00:45Data from Russia's Ministry of Finance, cited by the Financial Times, reveals that Russian oil
00:52companies received approximately 1.221 trillion rubles in federal subsidies between April and
00:58July 2026 through price-damping mechanisms and the reverse excise tax system. In July alone,
01:05oil companies received 192.8 billion rubles in state support, though this represents a decline
01:12from the peak of 357.3 billion rubles in May and 312.5 billion rubles in June. These allocations
01:21reflect the immense pressure on Russia's refining sector. In July, at least 18 major refineries were
01:27struck by Ukrainian drones, with eight forced to temporarily suspend production. Satellite imagery
01:33analyzed by the Financial Times shows that repair work is progressing extremely slowly, with damage at some
01:39facilities remaining visible from space for weeks or months, refinery shutdowns, and long-term damage.
01:46The analysis identified refineries in Kirishi, Tuopse, Samara, and Cizron as completely non-operational
01:54at the time of assessment. Experts estimate that even after resuming operations, it will take more
02:00than a year for these facilities to return to previous production levels. Since the beginning of 2026,
02:06Russian refineries have been attacked at least 194 times by Ukrainian forces,
02:12approximately 11 times more than during the same period last year. The attacks have targeted some
02:18of Russia's largest refineries, including the Omsk refinery, one of the world's largest,
02:23the Moscow refinery, and the Tuopse refinery, which President Putin had once described as exceptional.
02:29Recent strike on Yaroslavl refinery. On August 6, Ukrainian drones struck the Slavneft-Yanos oil
02:37refinery in Yaroslavl, approximately 700 kilometers from the Ukrainian border. Governor Mikhail Evryev
02:45confirmed it was the largest drone attack on the region to date, with 93 drones reportedly shot down.
02:52Videos and satellite imagery verified by the independent outlet Astra showed the facility engulfed in flames.
02:58The refinery, which processes approximately 300,000 barrels per day, had previously been targeted on
03:05August 5. Following the attack, authorities implemented traffic restrictions on roads leading
03:11to Moscow and closed some highways, affecting the southwestern route and Kossy Street near the refinery.
03:17Economic Impact
03:18Despite high global oil prices resulting from Middle East tensions, Russia's budget deficit continues to
03:26widen. Ukrainian intelligence reported that the deficit reached $78.4 billion by the end of April
03:332026, already exceeding the annual target of $50.5 billion. Oil and gas revenues, which once accounted for
03:4240 to 50 percent of Russia's income, have fallen to approximately 20 percent of the total.
03:47Russia has been forced to import fuel from Belarus and Kazakhstan to address domestic shortages, a situation
03:55described as unprecedented for a country that was traditionally a net exporter of gasoline.
04:01Ukraine's domestic missile program
04:05In parallel with its drone campaign, Ukraine is advancing its domestic missile development program.
04:11President Zelensky confirmed on August 8th that the FP-7 missile, developed by the Ukrainian company HP,
04:18with a range exceeding 650 kilometers and capable of striking Moscow, is approaching operational readiness.
04:26The company is also developing the larger FP-9 missile, and a next-generation FP-7 variant is being designed
04:33as an
04:33anti-ballistic missile system similar to the U.S. THAAD system, in cooperation with nine European partners.
04:39The company also produces IP-1 and IP-2 drones from medium- and long-range strikes,
04:46which reportedly play a significant role in Ukraine's war effort.
04:49However, the company has faced controversies, including a corruption scandal linked to government contracts,
04:55raising questions about transparency in defense procurement.
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