Global Oil Crisis Deepens as Ukraine Claims Major Damage to Russia’s Refining Capacity

The ongoing conflict in West Asia is intensifying concerns over a global oil and gas supply crisis, with disruptions affecting a significant share of energy transportation and pushing prices higher. At the same time, Ukraine continues to target oil infrastructure in Russia amid the prolonged Russia-Ukraine war. Ukraine has now claimed that its long-range attacks have damaged more than half of Russia’s oil-refining capacity, affecting major facilities in locations including Moscow, Yaroslavl, Ust-Luga and Perm. Kyiv says the disruption could put additional pressure on Russia’s economy and its ability to sustain the war.

Repeated attacks on Russian refineries have also contributed to fuel-supply pressures inside the country. Russia reportedly faced fuel shortages earlier this year, prompting authorities to impose restrictions on gasoline sales in some areas, while motorists were at times forced to wait in long queues. Moscow has not publicly released detailed figures on the overall damage caused to its oil infrastructure. Meanwhile, Russia has increased financial support for oil companies supplying the domestic market. According to the Russian Finance Ministry, refinery-related fuel subsidies reached about $3.6 billion in September, the highest monthly payment since April 2022.