Ukrainian drones hit Russian oil refinery 1,300 km from frontlines, here's how such attacks plan to derail Putin's war economy

In one of the deepest strikes so far, Ukrainian drones on Tuesday hit one of the largest Russian oil refineries around 1,300 kms from the war’s frontlines, according to a report.

While Ukraine has used drones throughout the war, such deep penetration into Russian territory is not usual. Even as the Ukrainians hail their newfound capabilities, there are reportedly concerns among the Americans about continued Ukrainian strikes on Russian petroleum sector as too much damage to Russian production may trigger a world energy crisis.

For the Ukrainians, attacking Russian oil facilities is a way to defund the war as energy exports are a major source of funds for Russian President Vladimir Putin’s war on Ukraine.

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Ukrainian drones hit deep inside Russian territory

Ukrainian drones on Tuesday hit at least three sites in Russia’s Tatarstan, which is around 1,300 kms (800 miles) from the frontlines, according to Reuters.

The report said that the Ukrainian drones hit Russian oil and gas company Tatneft’s refinery in Nizhnekamsk in the Tatarstan republic. It is one of the largest and newest refineries in Russia with the production of around 360,000 barrels per day. Rustam Minnikhanov, the head of the Tatarstan republic, acknowledged the attack.

Russian state-run news agency RIA reported that a fire erupted at the refinery, but it was brought under control in 20 minutes.

Minnikhanov also said that Russian enterprises at two other locations in the region, Yelabuga and Alabuga Special Economic Zone (SEZ), were also struck.

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Last year, The Washington Post reported that the Russians were building a plant to mass-produce drones with Iranian help at Alabuga SEZ.

While Minnikhanov said that no serious damage had been done, Reuters quoted a Ukrainian source as saying that “significant damage” had been done to a military target in the Tatarstan republic.

How Ukraine plans to derail Russia’s war economy

Despite sanctions and a price cap imposed by the West, Russia has sold oil throughout the war. The income from the oil trade has been a major source of funds for the Russian war on Ukraine. The Ukrainian drone strikes appear to be an attempt to dent this stream of Russian funds.

The CNN has reported that experts believe that instead of oil storage units, Ukraine has been hitting distillation units where crude oil is processed into fuel and other derivatives to be sold in the international market.

“We really see this as a shift in Ukrainian tactics to try to defund the Russian war machine…If you think about the sanctions that have been put in place so far, they’ve largely bypassed energy. It really has been energy exports, crude, natural gas, refined products, that have given Russia the economic lifeline to continue to fight this war,” Helima Croft, a managing director and global head of commodity strategy at the investment bank RBC Capital Markets, was quoted as saying in the report.

The strategy has already had some effect. While Ukraine has said that up to 12% of Russian refining capacity is now offline, Reuters has estimated that it is up to 14%.

Such an approach has, however, led to concerns in the United States as continued strikes on Russian oil facilities could lead to a global energy crisis.

The CNN reported that an even bigger worry will be if Ukraine goes beyond refineries in its attacks. It reported that some of Russia’s largest oil ports that are responsible for up to two-third of oil trade are within the range of Ukrainian drones.