Russian President Vladimir Putin's war in Ukraine has suffered another significant setback after it emerged that a major oil refinery will remain out of action until at least the start of 2027, following repeated Ukrainian drone strikes this month. The Gazprom Neft-operated facility, located just south of Moscow, was first attacked on June 16, damaging a distillation unit that accounts for 53% of the refinery's capacity. A second strike two days later is believed to have damaged a more modern Euro+ unit that handles the remaining 47%.
Extensive damage and long repair timeline
An industry source said of the damage: “It will take at least half a year to repair.” The plant processed 11.6 million metric tons of oil in 2024, producing 2.9 million tons of gasoline and 3.2 million tons of diesel, according to Reuters. The prolonged outage will strain Russia's domestic fuel supply and undermine its ability to fund military operations.
Russian officials have not publicly commented on the damage to the Gazprom Neft-operated facility. However, the attacks are part of Ukraine's intensified campaign against Russian oil refineries and supply lines since the spring. Russia has been forced to scale back production, leading to fuel rationing in some regions.
Fuel price surge and export restrictions
As a result of the drone strikes, the average price of gasoline in Russia has climbed 6.6% since the start of the year, with a single-week jump pushing national averages to 69.11 rubles per litre (approximately £3.20 per gallon) as of June 15. Deputy Prime Minister Alexander Novak said on Tuesday (June 23) that the domestic fuel market situation was “challenging but under control,” noting that a total ban on diesel exports is now being considered alongside existing restrictions on gasoline and jet fuel exports.
Gazprom Neft is the third-largest oil producer in Russia and the oil-focused subsidiary of the state-owned energy giant Gazprom. Headquartered in Saint Petersburg, it is one of Russia's largest state-backed corporate entities and directly finances the Kremlin's war budget and military operations. Due to its role in sustaining the invasion, the company has been heavily targeted by Western sanctions, which have isolated it from global financial markets and forced it to sell off its foreign assets.
Previous attack on Moscow oil depot
Earlier this month, a huge Russian oil depot in Kapotnya — described as the largest in Moscow and located 14 miles from the city centre — was struck by Ukrainian drone debris. Anton Gerashchenko, former advisor to Ukraine's Internal Affairs Minister, said: “An oil refinery in Kapotnya, Moscow, Russia, is burning after a drone attack.”
This comes as reports have emerged that Putin is “ready” for peace talks with Ukraine after Kyiv's devastating strikes on Russian oil infrastructure. The Russian leader on Tuesday described the Ukrainian strikes as a ploy to “destabilise society.” Putin said: “Russia, however, as has been stated repeatedly, is ready for peace negotiations with Ukraine. It is ready to proceed on the basis of the agreements reached back in Istanbul, agreements which, I would remind you, were initiated at the time by the Ukrainian delegation. That means they were satisfied with them. And I see no grounds for us to depart from those agreements.”
