Ukraine's Drone Campaign Crimps Russia's Oil Refining Capacity

Russia's oil refining capacity has hit a 24-year low following Ukraine's drone campaign against Russian oil infrastructure. In July, Ukrainian drones struck 18 Russian refineries, surpassing the previous record of 17 attacks set in May. The Omsk refinery, Russia's largest with a processing capacity of 440,000 barrels per day, was among those targeted.

According to Bloomberg analysis, Russian refineries processed an estimated 3.6 million barrels per day in July, down from the typical seasonal average of around 10-11 million barrels per day. This is the lowest monthly level since May 2002.

The attacks have forced Russia to reroute some crude through Baltic ports, but pipeline and storage capacity are insufficient to replace all Black Sea export volumes. The disruptions have also led to a ban on most diesel and gasoline exports to prevent domestic shortages.