Russian crude processing dropped to its lowest level in more than two decades in July, as Ukraine broadened its drone campaign beyond refineries to target tankers, pipelines, and export infrastructure across the country, The Moscow Times reported, citing Bloomberg analysis.

Russian refineries processed an estimated 3.6 million barrels per day in July — the lowest monthly figure since May 2002 and approximately one-third below seasonal norms. Between 2020 and 2025, Russian refineries typically handled between 5.3 million and 5.6 million barrels per day during the comparable period. Russia is one of the world's largest crude producers and exporters, alongside the United States and Saudi Arabia, meaning sustained disruptions to its refining and logistics network carry implications well beyond the domestic market.

Ukraine struck 18 Russian refineries during the month, exceeding the previous record of 17 attacks recorded in May. Among the targets was the 440,000-barrel-per-day Omsk refinery, Russia's largest facility, situated more than 2,500 kilometers from the Ukrainian border. Ukrainian drones also hit five large oil tankers, five port infrastructure installations, and two pipelines. In total, Bloomberg counted 30 attacks on Russian oil infrastructure in July — the second-highest monthly figure since the full-scale invasion began. The expansion of strikes to maritime and pipeline infrastructure marks a shift from earlier phases of the campaign, which concentrated primarily on refinery complexes.

Ukrainian forces focused primarily on refineries during the first half of July before shifting toward tankers and export logistics later in the month. Refinery strikes resumed in the final week, with three large plants hit in the last three days of July and four more attacked over the following weekend, according to Sergei Vakulenko of the Carnegie Russia Eurasia Center.

Russia extended its ban on most diesel and gasoline exports last week to avert domestic shortages as refinery outages curtailed fuel production. The decline in processing capacity has also pushed producers to export greater volumes of crude oil, intensifying pressure on ports and tanker fleets already disrupted by Ukrainian strikes. Russia first imposed the export ban in September 2023 amid similar refinery disruptions, and has periodically renewed it as supply constraints warrant.

Bloomberg reported that only four tankers loaded crude at Novorossiysk during the week ending July 26, compared with seven and eight during the preceding two weeks. Jorge Leon, head of geopolitical analysis at Rystad Energy, noted that Russia can reroute some crude through Baltic ports, but that existing pipeline, storage, and tanker capacity is insufficient to fully replace Black Sea export volumes. The Novorossiysk complex on the Black Sea is Russia's primary southern crude export terminal, handling volumes that feed Mediterranean and Asian buyers.

By Charles Kennedy for Oilprice.com