Ukrainian Drone Strikes Cripple Russian Fuel Supply
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- Ukrainian drone strikes on Russian oil infrastructure have triggered fuel rationing in 53 Russian regions and occupied Ukraine, with Moscow and Saint Petersburg petrol chains like Tatneft capping customers at 20 litres of petrol and 40 litres of diesel per sale
- Ukraine struck the Moscow Oil Refinery twice in one week, forcing it to halt operations, shutting down six Moscow airports, and producing 'oil rain' that covered surfaces in black soot — the refinery supplies over 38% of the capital region's fuel including aviation fuel to Domodedovo, Vnukovo, Sheremetyevo, and Zhukovsky airports
- Russia's oil production fell to 8.74 million barrels per day in May, down from 8.96 million bpd in April and roughly 100,000 barrels below target, with Russia responding by allowing refineries to circulate higher-sulphur petrol and planning increased imports from Asia
- Russia's defence ministry reported intercepting 992 drones and four missiles over a single 24-hour period, as Ukraine also struck the TANEKO refinery in Tatarstan and the Tolyattikauchuk chemical plant that makes synthetic rubber for solid rocket fuel
- Putin made a rare public concession that Ukrainian strikes are damaging the Russian economy, while a Duma member cited 'new prohibitions, restrictions and a growing financial burden' and linked ineffective economic reforms to the faltering war effort
- Ukraine secured €4 billion ($4.6bn) in new military aid commitments from allies during the week, plus €6 billion ($6.9bn) from the EU's European Peace Facility, and signed an agreement with Germany to develop a European anti-ballistic interceptor missile
- Russia's defence spending rose 30% in Q1 year-over-year according to finance ministry data, putting it on track to hit 10% of GDP despite a planned reduction to 6.2%, with military spending now consuming two-thirds of budget revenues amid falling tax income
Why it matters: The fuel rationing marks a rare moment where the economic cost of the war has breached the walls of Moscow and Saint Petersburg, contradicting Putin's promises to contain long-range strikes. With defence spending consuming two-thirds of budget revenues and on track to hit 10% of GDP, Russia's fiscal squeeze is tightening precisely as new EU and German military commitments expand Ukraine's strike capabilities.
