All of Lukoil’s major refineries in Russia are now offline after a Ukrainian drone strike halted crude processing at its NORSI plant on 26 August, Reuters reported the shutdown. NORSI is Russia’s fourth-largest refinery and second-largest gasoline producer.

Ukraine’s General Staff said it had struck the refinery in Kstovo, Nizhny Novgorod Oblast, where a fire subsequently broke out. It said the refinery helps supply Russia’s armed forces.

Industry sources told Reuters that several processing units and other plant infrastructure had been damaged. No repair timetable is available, and Lukoil did not respond to the agency’s request for comment.

NORSI can process about 15 million tons of crude annually and produce about 5 million tons of gasoline and more than 5 million tons of diesel, according to Reuters.

A Reuters dispatch in The Moscow Times said Lukoil listed no NORSI-made gasoline, diesel, or other petroleum products for sale on the St. Petersburg International Mercantile Exchange after the shutdown.

Explore further

Russia diverts defense-industry chemicals to gasoline—but stations still run dry

NORSI’s closure followed the complete shutdown of Lukoil’s Perm refinery after a 21 August drone strike. The company’s Volgograd plant had already stopped processing on 31 July.

The Moscow Times listed four previous occasions this year when drone strikes stopped NORSI from processing crude: 5 April, 20 May, 24 June, and 2 July. The latest attack, therefore, produced the plant’s fifth drone-related shutdown in less than five months.

Lukoil also operates a smaller refinery in Ukhta, which remains active.

Kremlin threatens retaliation

Nizhny Novgorod Oblast Governor Gleb Nikitin wrote that Russian forces had “repelled” more than 40 drones. He also reported damage to an unnamed industrial enterprise, several homes, and cars.

A day later, Kremlin spokesperson Dmitry Peskov promised a “harsh response” to Ukrainian strikes on Russia’s economic and trade infrastructure.

Russia is facing its second bout of fuel shortages this summer. Gasoline sales limits have returned to Moscow and St. Petersburg, while Rosneft has capped purchases at 30 liters per vehicle across its filling-station network, The Moscow Times reported.

Kommersant reported that Astrakhan Oblast had capped gasoline purchases at 30 liters and was serving drivers according to odd- and even-numbered license plates. Orenburg Oblast introduced a similar system and capped purchases at 30 liters to preserve supplies for emergency services and public transport, Governor Yevgeny Solntsev announced.

Five days before NORSI stopped, the Russian government ordered officials to distribute available fuel more evenly between and within regions. Russia also plans to extend its diesel export ban through September as refinery outages constrain domestic supplies.

Ukraine celebrated 35 years of independence on 24 August, and Ukrainian President Volodymyr Zelenskyy marked the day with an address listing what the invasion has cost Russia, published by the President's Office. He said Putin is mortal and out of time to understand Ukraine, and said Ukraine will not hand over Donbas or save the Kremlin half a million soldiers. He also asked partners for sanctions and weapons strong enough to force an end to the war.

Russia has been invading Ukraine since 2014 and fighting a full-scale war on it since 2022, and Ukraine now supplies a growing share of the missiles and drones it fights back with, while the air defense shielding its cities still hangs on decisions taken in Washington and European capitals—which is what makes a holiday speech a statement of what Kyiv will not trade and what it needs built or delivered next.

The losses he read back to Moscow

President Zelenskyy turned from his own citizens to Russia partway through the speech. 

"You wanted to take all our Ukraine, all our land; instead, you lost your oil refineries, your fleet, your profits, your entire generation that you sent into the meat grinder," he said. 

A country that wanted Ukraine erased from the map, he added, is now absent from the international agenda of the future civilization.

He set Moscow's self-image against its filling stations. 

"For 27 years, the head of Russia has talked about greatness, while Russia is standing in lines for gasoline," Zelenskyy said. 

Moscow and St. Petersburg brought back gasoline rationing this month, and Rosneft capped fills at every station in the country.

On the Russian leader he was blunt. 

"Putin hopes that we are tired. But we know that he is mortal," he said, adding that Putin never understood Ukraine and now will not have the time to.

A fifth Independence Day at war

Before the holiday, Russian ballistic missiles hit Kyiv and its main airport hub twice in 24 hours. A solution to Russian ballistic terror must be found, Zelenskyy said, and that gamble must not pay off. 

Russia does not want peace, it wants mobilization, the president said. Ukraine will not let Moscow seize the initiative or convince Europe that surrendering Donbas ends the war. Russia keeps pushing back the dates for taking all of Donetsk Oblast and will keep pushing them back, he said.

The president called Ukraine's defense industry a giant that forges independence around the clock, and demanded more from it. Mid-range strikes cut Russian logistics and long-range weapons cut Russian profits, he said, listing Moscow, Tuapse, Tula, Ryazan, Olenya, and Omsk among the places already hit. 

Explore further

Ukraine’s drones hit two Russian fighters and a spy drone—and blinded radars from occupied Crimea to Rostov

Ukraine's home-built Flamingo cruise missiles should stop being a rare species and arrive en masse: "They must 'winter' in Russia," Zelenskyy noted. 

Previously, Flamingos have hit defense plants more than 1,000 km from the border, though they still appear in strikes in small numbers.

"China should no longer remain silent"

Ukraine is not asking anyone to fight for it, the president said — only for everything needed to stop the war before Putin starts the next one. He wants sanctions that make Russians howl and Moscow at a negotiating table, and said Washington has lost its illusions about Russian intentions. Europe must be Europe, he said: united, ambitious, brave. 

"China should no longer remain silent," he added, saying Beijing must cool the ardor of someone who puts on a sailor's uniform and cap and talks about a nuclear strike—a description that fits Putin.

Ukrainian forces struck production facilities at the Novokuybyshevsk oil refinery in Russia’s Samara Oblast overnight on 22 August, sparking a fire at the Rosneft-owned plant, Ukraine’s General Staff said. The extent of the damage remains under assessment.

Ukraine has repeatedly targeted Russia’s oil refineries to restrict military fuel supplies and reduce the energy revenues supporting Moscow’s war. The latest strike came as gasoline rationing returned to Moscow and St. Petersburg, and Rosneft capped nationwide purchases. Militarnyi described the plant as one of Russia’s 10 largest refineries.

The Rosneft-owned refinery can process about 8.8 million metric tons of crude annually and produces more than 20 petroleum products, including aviation fuel and diesel, Ukraine’s General Staff said.

Fire Point said FP-1 long-range drones were used to strike the refinery.

The same overnight wave also hit an Ozon logistics center in Chapayevsk, where people were injured, and work was halted, Reuters reported, citing the company.

Neither the damage to the refinery nor any interruption to production has been independently confirmed.

Ukraine keeps pressure on Russian fuel supplies

The strike came one day after Ukraine confirmed hitting Lukoil’s Perm refinery, approximately 1,530 kilometers from Ukraine’s northern border. That attack also caused a fire, according to the General Staff.

At least four Russian refineries went offline during August amid continuing Ukrainian attacks.

By mid-August, filling stations in at least 12 Russian regions were experiencing hours-long lines. Some areas had reintroduced purchase limits or rationing based on license-plate numbers, according to the same report.

Gasoline limits had also been reinstated in Moscow and St. Petersburg, while Rosneft had capped sales at 30 liters per vehicle across its nationwide filling-station network. Diesel purchases remained unrestricted.

Russia’s summer fuel crisis is back for a second wave, driven by Ukrainian strikes on its oil refineries. This time, it has forced rationing back into both Moscow and St. Petersburg and pushed its largest oil producer to cap gasoline nationwide.

St. Petersburg drivers ran into limits again on 20 August, when several major oil companies restricted sales across the city, Bumaga first reported. Gazprom Neft reinstated a 60-liter-per-receipt cap it had lifted on 4 August and blocked customers from filling more than one canister.

Tatneft capped AI-95 and AI-92 at 50 liters. Many Gazprom Neft stations carried no AI-95 at all, its own station map showed. “Gazprom and Lukoil are dropping dead,” one driver wrote in a local chat.

The limits followed Moscow’s by a day. There, Gazprom Neft cut sales to 40 liters per car, and AI-95 turned up at a single Neftmagistral station, The Moscow Times reported. Rosneft went furthest, capping gasoline at 30 liters per car at every one of its stations across Russia, with no limit on diesel. In June, the same network was still letting drivers take up to 90 liters a fill.

Explore further

Russia’s biggest oil company stopped selling gasoline in canisters nationwide after Ukraine’s strikes. It blames “seasonal demand”

By mid-August, gas stations in at least 12 regions were again seeing hours-long lines, Meduza’s regional roundup found, citing a count by the outlet 7×7. Lipetsk Oblast brought back odd-even rationing by license plate on 13 August and held fills to 30 liters, a step Governor Igor Artamonov announced; Sochi’s authorities asked residents and tourists to leave their cars at home.

Ukraine has spent months hitting the plants to choke off both the fuel Russia’s army runs on and the oil revenue that funds its war. At least four refineries went offline in August alone.

Officials say supply is holding. Energy Minister Sergei Tsivilyov said on 18 August that fuel remains available, even as he acknowledged the lines. Gasoline averaged 76.04 rubles a liter ($0.89) on 10 August, off a July peak that ran nearly 20% above where the year began.

Gasoline was available at 28% of Russian gas stations last week, down from 41% the week before—despite a July government decree that authorized refineries to divert chemicals from industry, including defense production, into fuel, Izvestia reported on 18 August.

The diversion has since triggered motor oil shortages, and, as Kommersant reported, a government commission that met in mid-August to reverse course could not agree on how.

Moscow runs dry

Izvestia correspondents checked 21 stations in Moscow and Moscow Oblast on 17 August: only seven sold AI-92, and five sold AI-98. Gazprom Neft has reimposed purchase limits—40 liters at automated pumps, 60 at staffed ones, RBC reported on 19 August.

Russia has meanwhile received a tanker of Indian gasoline in Murmansk, initially priced at 130,000 rubles ($1,550) per ton—nearly double the 73,000-ruble ($870) domestic exchange price, Izvestia reported.

The chemicals in question—benzene, toluene, xylenes, and phenol—are intermediate refinery products used to make rubbers, plastics, and synthetic materials for industry, including defense. A 2 July decree authorized refineries to blend more of them into gasoline as an octane booster. The ISW assessed on 19 August that the diversion is now draining raw materials from industrial supply chains.

Motor oil shows the damage. Prices have risen 15–20% since January, with some products up 40% and imported brands roughly doubling, Kommersant reported on 19 August.

Dmitry Prokofiev, director of external communications at NEFT Research, told the paper that the lower-grade Euro-2 and Euro-3 fuel now at Russian stations wears engines faster and requires oil changes 1.5 to 2 times more frequently.

Drivers forced onto worse gasoline burn through motor oil faster, but the raw materials that would go into producing it are being diverted to make more gasoline.

From rationing to Rosgvardia

A Russian insider source cited by ISW claimed on 18 August that Rosgvardia—Russia’s heavily militarized internal security force—has deployed to gas stations in Moscow Oblast.

Rosgvardia personnel have reportedly appeared at no fewer than 13 stations across Russia and occupied Crimea over the summer.

A month ago, the governor of Rostov Oblast did something similar, sending Cossacks and volunteers to gas stations to keep order.

Explore further

Russia’s fuel crisis has moved from the pump to the harvest

Separately, Russia’s legislative commission approved a bill on 18 August authorizing rescue forces under the Ministry of Emergency Situations to use physical force and firearms when nonviolent means prove insufficient, Vedomosti reported.

United Russia deputy Anatoly Vyborny, one of the bill’s co-authors, framed the measure as a counter-drone tool for evacuations. ISW assessed that it also provides legal cover for suppressing domestic unrest—an assessment the institute linked to involuntary mobilization reportedly under consideration after September’s State Duma elections.

Ukraine’s sustained drone strikes on Russian refineries have reversed the country’s position as a net fuel exporter. Moscow now imports gasoline from as far as India and Morocco while rushing crude oil through the Arctic to reach Asian buyers it can no longer supply with finished fuel. The flows are scaling up—and running on the same sanctioned, EU-listed tankers.

The reversal is tightening global fuel markets. Russia runs the world’s third-largest refining industry, and the combined disruptions have acted to squeeze supply worldwide, with Moscow banning exports of both gasoline and diesel to keep its own pumps supplied.

Russian refining falls to its lowest since 2002

Ukrainian drone strikes have driven Russian crude processing to 3.6 million barrels a day in July—its lowest level since 2002 and roughly a third below the seasonal norm, according to EA Analytics data cited by Bloomberg.

Explore further

Ukraine’s drones force oil-giant Russia to import gasoline—now from Morocco

Ukraine hit at least 24 of Russia’s 34 largest refineries in some 50 strikes, with five more struck last week and at least two this week. With refining at a 24-year low, Russia is exporting crude through the Arctic while importing refined fuel from India.

Fuel shortages and rationing now affect about 50 million people—a third of Russia’s population. Moscow is subsidizing both the damaged refineries and the imported fuel replacing their output.

Sanctioned tankers take crude toward the North Pole

Seven tankers carrying about six million barrels of crude were heading to Asia through the Northern Sea Route as of 11 August. That volume already amounts to nearly half the approximately 13 million barrels the route carried during the entire 2025 season.

The route cuts two weeks off the voyage to China compared with the Suez Canal, and ice conditions are relatively mild this year, one trader told Reuters.

But speed is only part of the surge. Tankers on the Arctic route bypass European waters, where enforcement has led to inspections and detentions of sanctioned vessels, and Ukraine’s strikes on Black Sea shipping and the Iran–US standoff at Hormuz have narrowed the alternatives.

Vessel-tracking data show the convoy following a route north of the Severnaya Zemlya archipelago rather than through the traditional and more southern Vilkitsky Strait—putting sanctioned oil tankers within 500 nautical miles of the North Pole. Maritime experts said commercial traffic at this scale has never operated that far north.

Russian crude returns home as Indian gasoline

In the opposite direction, gasoline refined from Russian crude at Nayara Energy’s Vadinar refinery in western India is flowing back to Russia through a chain of ship-to-ship handoffs at Egypt’s Damietta Port. At least three cargoes have cycled through the hub since June. The first reached Russia on 5 August.

Bloomberg’s tracking data show the tanker Cyclone loaded 42,000 tons of gasoline at Vadinar on 18 June, transferred the cargo to the Oman-flagged Garnet off Damietta on 6 July, and the Garnet reached Russia in early August. Two more tankers, Varg and Photon, followed the same route in July, with Photon’s cargo handed to the Russian-flagged Talisman on 28–29 July.

All these vessels are under EU sanctions. Garnet and Talisman are also under US sanctions.

Nayara’s refinery, which processes 400,000 barrels a day, is 49% owned by Rosneft. EU sanctions in July 2025 drove away its non-Russian crude suppliers, so the plant switched to processing only Russian oil and now buys and sells through traders—which is how its gasoline reaches Russia without a direct India-to-Russia sale, as Euromaidan Press reported.

The expected September launch of Rosneft’s Vostok Oil project could push more crude through the Northern Sea Route, traders told Reuters. NSR crude shipments fell 4% in 2025. This year’s opening weeks have already matched half the full-season total.

A Ukrainian drone strike shut the plant that produces 40% of Russia’s liquefied petroleum gas on 10 August, and the country’s fuel crisis snapped back across at least 16 regions within days.

The shutdown of the Sibur ZapSibNefteKhim complex in Tobolsk, western Siberia, removes about six million metric tons of annual LPG capacity from a fuel system that was already under strain.

Explore further

“This is money of his accomplices burning”: Russian partisans and Ukraine hit Siberian plant tied to Putin’s inner circle

Gasoline restrictions had begun easing across Russia at the end of July, when Ukrainian drones temporarily shifted to other targets. When the strikes resumed in early August, fuel rationing returned immediately, the independent Russian outlet 7×7 reported.

Three industry sources told Reuters on Tuesday that the complex stopped operations indefinitely “while the extent of the damage and its consequences are being assessed.”

No LPG volumes were offered from the Tobolsk delivery point on Russia’s commodity exchange—a point that earlier this year handled about 4,000 metric tons of propane-butane mix per day. Sibur declined to comment.

A strike on one unit stopped the entire plant

Tyumen Oblast Governor Aleksandr Moor confirmed a fire at an industrial site following a drone attack but did not identify the facility.

Ukraine’s Special Operations Forces Deep Strike units, working with the Russian insurgent movement Chornaya Iskra (Black Spark), claimed the strike. The plant sits more than 2,200 kilometers from the front line.

Militarnyi’s OSINT analysis identified the specific target as the complex’s central gas fractionation unit—the plant’s entry point, where raw hydrocarbons are separated into usable products before anything else in the production chain can run. About half of ZapSibNefteKhim’s output feeds Sibur’s own petrochemical complex in Tobolsk; the rest goes to market.

Sibur held contracts to supply feedstock to defense-industry enterprises, including the Kamenskiy Kombinat, which produces solid rocket fuel and motors for the Grad, Smerch, and Uragan rocket systems.

Sibur also supplied the Perm Gunpowder Plant, which makes charges for multiple-launch rocket systems, air-defense complexes, and cruise missile boosters, Militarnyi also reported. The Sverdlov Plant and Biysk Oleum Plant, both explosives manufacturers, were also Sibur clients.

Fuel rationing returned within days

Across at least 16 regions, the fuel restrictions that had briefly eased in July are back, 7×7 reported.

In Sochi—Russia’s most famous beach resort—Mayor Andrei Proshunin said on Telegram that fuel was available at only 38 of the city’s 58 gas stations. Deputy Mayor Vyacheslav Bauer told residents and tourists to use public transport or stop driving, the Moscow Times reported.

In Bashkortostan, authorities banned gasoline sales in canisters, leaving at least one resident unable to fuel his lawnmower—as he complained to regional head Radiy Khabirov during a televised address, a Bashkortostan outlet reported. Production at the Ufa petrochemical complex is unaffected by the drone strikes, Khabirov said.

Still, the shortage persists for a different reason: every time a drone-alert protocol is activated, fuel tankers halt en route to gas stations, regional official Elena Prochakovsky explained at a briefing reported by Prufy. Three districts remain in a fuel “red zone,” and 19 of 26 gas stations in Sterlitamak are operating.

Lipetsk Oblast Governor Igor Artamonov told residents not to expect improvement for one to two weeks, Lipetsk outlet Ploshchad reported. “If you can leave 10 liters unfilled, the person arriving on empty will thank you,” he said.

Russia’s fuel system was already breaking

The Tobolsk shutdown lands on an already fractured system. By mid-July, fuel rationing had spread to more than half of Russia’s regions. Ukraine’s drone campaign had struck Russian refineries 194 times in the first half of 2026 alone—eleven times the previous year’s pace—knocking nearly half the country’s refining capacity offline, Ukraine’s General Staff reported on 4 July.

Repair timelines keep slipping because sanctions block the spare parts Russian plants need. To plug the gap, Russia has banned gasoline exports, permitted lower-grade fuel, and begun importing gasoline from India and Morocco, refined from its own crude—shipping it 14,000 kilometers home because its refineries cannot meet domestic demand.

The Tobolsk shutdown removes more LPG output than any single strike of the war. Russia was already rationing fuel in more than half its regions before this strike.

Russia can’t refine its way out of its fuel crisis, so it is changing who controls the already existing fuel. Months of Ukrainian drone strikes on refineries have driven shortages and rationing across much of the country. The government’s answer isn’t more fuel—it is a different market.

Faced with the shortage, the Kremlin had options. In June, analysts urged it to raise the exchange quota to push more fuel onto the open market and toward the regions running dry.

It did the opposite. The mandatory share of gasoline that producers must sell on the open exchange was cut from 15% to 10%, with the majors pushing for 2%, and the exchange was closed to anyone but buyers who will use the fuel themselves, shutting out traders who bought to resell.

That choice adds no fuel. It moves distribution off the exchange that set prices for a decade and into direct contracts between the big producers and the buyers they pick—handing the majors the chain from refinery to pump. Part of the package came straight from proposals Rosneft head Igor Sechin sent to President Vladimir Putin.

Winners and losers

The winners are the big, vertically integrated oil companies, which refine up to three-quarters of Russia’s oil. Direct deals let them keep the margin that once went to middlemen and choose who gets supplied; drop the quota to 2%, and about 5 million tonnes of gasoline a year move into their private channels.

The losers are the independent stations—60% to 72% of Russia’s roughly 25,000 gas stations, depending on who’s counting, and now unable to buy at the exchange price.

Alexander Moiseev, who owns the Kostroma Fuel Company, has been hauling gasoline from Surgut, 2,000 kilometers away, at 118 rubles a liter ($1.45) with freight, because the majors won’t sell to him wholesale. He works on a minimal markup. Rosneft, meanwhile, has multiplied sales at its own pumps.

What stabilization there is has been narrow. Prices eased mainly where supply was steered—Moscow, St. Petersburg, the big cities—while regions thick with independent gas stations stayed short, independent analyst Kirill Rodionov told Kommersant.

None of this is hidden. Facing the crunch, the government also let refiners sell banned Euro-2 gasoline again; online marketplaces pulled fuel listings; and Deputy Prime Minister Alexander Novak called the market “challenging but under control.”

In occupied Crimea it goes furthest: this week, the occupation authorities announced fuel sales were stabilizing, even as they capped each car at 20 liters and fixed the price of AI-92, the Crimean Tatar Resource Center reported.

Explore further

Occupied Sevastopol puts fuel back on open sale—then caps every car at 20 liters

The market goes dark

As the exchange shrinks, its prices no longer reflect the market, and the state publishes less information on output, stocks, and regional supply. The people who most need to see where Russia’s fuel balance is breaking—regulators at home, and the sanctions monitors and energy analysts abroad who read that data—are left with less to look at, market participants told Kommersant. The market is going dark.

Whether the change sticks is contested. Some read the cuts as a passing emergency. Others expect the market to keep sliding toward closed, bilateral deals—less transparent, harder for newcomers, the independent stations ever more tied to the majors, Viktoria Trifonova, Senior Analyst at Yakov & Partners, told Kommersant. The state has reached for limits, subsidies, and hands-on redistribution ever since the 2018 price crisis.

Keeping the independent gas station chains alive was never the goal, NEFT Research’s Dmitry Prokofiev wrote in Kommersant—it was to keep fuel flowing to the big cities of European Russia and, above all, to the priority government sector.

Occupation officials in Sevastopol and occupied Crimea are telling residents the fuel crisis is easing—and this week they resumed “free sale” at a handful of named stations. From 6 August, every grade would again be sold openly on the TES network, occupation governor Mikhail Razvozhaev said, and AI-92, he noted, has been cut and fixed at no more than 100 rubles per liter ($1.23).

The catch is in the same announcement: no more than 20 liters per car, volumes the governor himself called small, and—at ATAN’s seven stations the same day—no filling canisters.

In occupied Crimea, the ATAN network capped diesel at 30 liters per customer and charged 119 rubles per liter ($1.46), the Crimean Tatar Resource Center reported.

Occupation authorities blame logistics and promise the caps will loosen and prices will fall once supply stabilizes. But shortages, high prices, and rationing show that the peninsula’s supply problems are far from solved, the center said. Crimea is caught in a shortage that now stretches across Russia, from filling stations to farms.

Explore further

First the pumps, then the harvest, now the commute—Russia’s fuel shortage keeps finding new victims

None of this is new. Sevastopol restricted fuel sales on 22 May, Crimea on 29 May, and for weeks drivers have been buying by QR code. Through the summer, Ukraine’s drone campaign has been draining the seaborne lifeline that feeds the peninsula. The worsening supply of fuel, power, and water is a natural consequence of the war and the occupation, Ukraine’s military intelligence said.

Ukrainian drone strikes have forced Russia to import gasoline—shipping cargoes from as far as Morocco to an Arctic port—and to pay for the damage twice over. Moscow now subsidizes both the refineries the drones keep setting on fire and the foreign fuel replacing what those refineries can no longer produce.

Russia caps fuel prices at home below what refiners could earn abroad, and the budget pays them the difference—so they keep supplying the domestic market rather than exporting everything. The payments, together with related reimbursements, reached 1.221 trillion rubles ($15 billion) from April through July, Finance Ministry data show—close to the full annual budget of Moscow Oblast, the region ringing the capital.

Those monthly payments have roughly halved since spring, to about 190 billion rubles ($2.4 billion) in July, as lower oil prices narrowed the gap the subsidy fills.

Russia cannot keep its refineries running

Russian crude processing fell to 3.6 million barrels a day in July, its lowest since 2002 and roughly a third below the seasonal norm. Ukraine has hit at least 24 of Russia’s 34 largest refineries in some 50 strikes.

Fuel shortages and rationing now affect 50 million people—about a third of Russia’s population—according to a Financial Times analysis. Russia runs the world’s third-largest oil-refining industry, so the lost output has tightened diesel and gasoline supply beyond its borders. With less capacity to refine at home, Russia has had to export more raw crude and less high-value fuel.

With its refineries down, Moscow is now paying a second subsidy—this time to the importers bringing gasoline in. Gasoline is arriving by rail from Belarus and Kazakhstan and by sea from India and, in mid-July, Morocco: a cargo loaded at the port of Tangier and discharged at Murmansk, on the Arctic coast.

Explore further

Why Russia is importing gasoline made from its own oil

Ukraine has already named the import route as a target. In early July, presidential sanctions commissioner Vladyslav Vlasiuk called Russia’s new reliance on imported fuel a fresh vulnerability and said Kyiv had raised a response with the European Commission—though the EU’s next sanctions package, now in preparation, is so far built mainly around other measures.

A country that ships crude out of the Arctic is now shipping gasoline in through it.

Ukrainian drones struck one of Russia's five largest oil refineries in Yaroslavl on the morning of 6 August, setting off several fires across the site, monitoring channels reported. Open-source analysts placed the blazes on the refinery grounds, while the region's governor claimed his air defenses downed the entire raid. The strike continued a months-long campaign that has pushed Russian oil refining to its lowest level in more than two decades.

Fires break out across the refinery

Ukrainian monitoring Telegram channel Exilenova+ first reported the attack around 4:00, later sharing footage that showed thick black smoke rising from several points on the site. Fire Point, the Ukrainian company that builds the FP-1 long-range drone, said Ukraine's Defense Forces hit the plant with the domestically made FP-1s. Open-source analysts geolocated one blaze to the refinery grounds. Astra, a Russian news Telegram channel, reported one fire on the plant's territory and a second it had not yet located.

One of Russia's biggest refineries

Slavneft-YANOS, also called the Novo-Yaroslavl refinery, ranks among Russia's five largest and is the biggest in the country's central regions. It processes about 15 million tonnes of crude a year into gasoline, diesel, aviation kerosene, jet fuel, lubricants, and bitumen. Rosneft and Gazprom jointly control 99.7% of its parent company, Slavneft. The plant's fuel feeds central Russian industry, airports, the Northern Railway, and military sites. It sits more than 700 kilometers from Ukraine's border.

Russia claims it downed every drone in the region

Yaroslavl Governor Mikhail Yevraev first reported the region was under drone attack around 3:00 and closed the highway toward Moscow. He later claimed the region had repelled its most massive drone raid, downing all 88 drones with no casualties. Yevraev stated that a detached house burned, windows were shattered in several apartment blocks, and residents' cars were damaged. 

Russia's Defense Ministry claimed it destroyed 605 drones over several regions overnight.

The plant has burned repeatedly in 2026, catching fire on 28 March, 26 April, 8 and 22 May, and 6 and 16 July before the latest hit. That made 6 August the seventh strike on the refinery this year. In the 16 July attack, an FP-1 struck the plant's tank farm.

Russia's refining in retreat

Ukraine has sharply expanded its FP-1 deep strikes on refineries this year, knocking out around 26 plants. By late July, only eight had fully restarted and at least 11 partly. Seven refineries stayed idle. Russian refining fell to 3.6 million barrels a day, its lowest since May 2002. 

Earlier, Moscow banned fuel exports, boosted gasoline imports from Belarus 25-fold, and turned to India and Morocco. It also let refiners sell Euro-2 gasoline, a grade banned in Russia since 2013, through 1 July 2027.