Russian Government Steps In to Stanch Reeling Oil Sector’s Historic Lows

Russia is tightening control over fuel production after drone strikes pushed refinery output to a 17-year low, forcing emergency measures to stabilize supply and prices. Make us preferred on Google Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied A view shows branding at a Rosneft petrol station in Moscow on October 23, 2025. (Photo by Olesya KURPYAYEVA / AFP) Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google The Russian government is tightening control over fuel production after output dropped to a 17-year low following a wave of drone strikes on oil refineries. According to The Moscow Times news outlet, 11 major oil companies – including Rosneft, Gazprom Neft, Lukoil, and Surgutneftegaz – are set to sign agreements with the Energy Ministry and the Federal Antimonopoly Service on measures to stabilize the domestic fuel market. Follow our coverage of the war on the @Kyivpost_official . The government has already approved the resolution, aimed at ensuring sufficient fuel supplies during seasonal demand growth and ongoing agricultural work, the cabinet press service said. Under the plan, the Energy Ministry will issue mandatory recommendations on fuel production volumes, domestic shipments, exports, and exchange sales, a source familiar with the matter told the Russian outlet Interfax . The quotas will apply to gasoline and diesel fuel production. Retail fuel prices will also be placed under state control, with oil companies required to keep price increases within inflation limits, taking into account tax changes. While similar recommendations existed previously, their role is now expanding. Companies will only be allowed to miss production or supply targets in cases of force majeure, the source added. Since the start of 2026, Ukrainian drones have struck Russian refineries at least 19 times. In April alone, at least five refineries partially or fully suspended operations: Other Topics of Interest Russia Fired Record Number of Drones at Ukraine in April: AFP Analysis Russia launched 6,583 long-range drones during the month, according to a compilation of daily reports published by Ukraine’s air force. Permnefteorgsintez (April 30), Syzran Oil Refinery (April 22), Novokuibyshevsk Oil Refinery (April 18), Tuapse Oil Refinery (April 16), Norsi (April 5). As a result, refinery utilization dropped to 4.69 million barrels per day – the lowest level since 2009 and even below the 4.88 million barrels per day recorded during last autumn’s fuel crisis. At that time, shortages spread across Russia, gas stations introduced rationing, and prices hit record highs. According to Bloomberg , Ukrainian drones struck Russian oil infrastructure 21 times in April. In addition to refineries, pipelines were hit five times, oil ports six times, and one tanker was attacked at sea. The number of strikes marks a record for 2026 and one of the highest levels since the start of the full-scale war, exceeded only in November and December 2025. Ukraine carried out another drone strike on the Tuapse oil refinery early on Friday, May 1, marking the fourth attack on the site in two weeks. According to the Krasnodar Krai task force, the strike triggered a fire. Russian news outlet RTVI said at least two storage tanks at the refinery caught fire, while social media videos showed thick black smoke over the area. Unmanned Systems Forces (USF) Commander Robert “Madyar” Brovdi confirmed a new strike on the Tuapse refinery, writing on Facebook: “Tuapse, Chornobaivka style, 4.0. Remake Four,” referring to a Russian-occupied Kherson region airport hit so often by Ukrainians in 2022 that it became an internet meme. USF spokeswoman Olha Melyoshina said on national TV that repeated strikes had reduced the refinery’s production capacity, though details remain undisclosed and official confirmation from the General Staff is pending. She said the plant had a capacity of 12 million tons of oil per year, adding that “after the fourth visit, this capacity has slightly decreased” and would be further reduced. She stressed that strikes on Russia’s oil infrastructure are legitimate targets, as they fund the Russian military. “These operations have not only economic but also psychological effects,” she said, adding that areas 1,500–2,000 km [932 to 1,243 miles] from the border are no longer safe rear zones. She also said Ukraine estimates Russia’s oil refining capacity fell by 20–30% in April, and claimed over 100 Russian air defense systems were destroyed over winter and early spring. Krasnodar Krai Governor Veniamin Kondratyev has not commented on the latest fire, instead greeting residents on the May 1 holiday. The latest strike follows an attack on April 28 , when major fires broke out at Tuapse, prompting evacuations. Burning fuel reportedly spilled onto roads , damaging vehicles, while Russian outlet Astra said contamination spread through city streets. Russian President Vladimir Putin ordered Emergency Situations Minister Aleksandr Kurenkov to travel to Tuapse, with regional authorities declaring a state of emergency. On April 30, Kondratyev said Energy Minister Sergei Tsivilev had visited the region and reported the fire extinguished. Authorities said drainage systems and containment barriers were being installed to prevent further spills into rivers and the Black Sea. The facility was also struck on April 16 and 20, with fires taking days to extinguish. Residents reported “oil rain” with elevated toxic emissions, while spills reached the Black Sea, forming a slick up to 77 kilometers (48 miles) along the coast. Kyiv Post is Ukraine’s first and oldest English news organization since 1995. Its international market reach of 97% outside of Ukraine makes it truly Ukraine’s Global – and most reliable – Voice.