Russia's Oil Industry Faces Multiple Threats Beyond Ukrainian Drone Attacks

Russia's oil industry faces significant threats beyond the recent Ukrainian drone attacks on refineries. The attacks have sparked a country-wide gas shortage and cost Moscow significant export earnings, but other underlying issues could prove more damaging in the long run.

The Russian pipeline network and tanker capacity, much of which dates from Soviet times, are aging and prone to leaks, reducing oil flow to refineries and export markets. In 2023, there were 14,716 major pipeline ruptures, spilling oil into the environment and limiting supply. The number of such leaks is likely to increase as Rosneft builds a new network in the Far North.

Environmental activists are sounding the alarm about the risks of infrastructure collapse due to global warming and permafrost melting. The Russian government has failed to impose stiff enough fines to discourage companies from cutting corners, leading to accidents that could worsen the climate crisis.