A Blog by Jonathan Low


May 2, 2024

Ukraine's Refinery Attacks Drive Russian Gas Prices Up 20 Percent As Supply Drops

Prices are going up as supply is going down. The Ukrainian attacks are having their intended effect on a Russian oil industry already suffering from sanctions that limit essential parts and software. JL 

Gabriel Gavin reports in Politico:

Ukrainian drone strikes on oil refineries deep in Russia have left the Kremlin racing to defend its territory while waging war on Ukraine. The attacks have also achieved the unthinkable, leaving the world’s largest petrostate running low on petrol. Diesel prices for Russian consumers have risen 10% in the past week alone. Petrol costs have hit a six-month high, up 20% from the start of the year as supply tightens and more facilities are forced to suspend production. Moscow has scaled back its fuel exports to historic lows. “Ukraine’s ‘physical sanctions’ accelerate Moscow’s vulnerability as drone strikes on Russian refineries speed the impact of Western sanctions and refineries struggle to replace Western equipment, spare parts and software.”



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