Russia has largely avoided publicly discussing how the war in Ukraine has affected its energy industry, but a senior government official recently acknowledged that the country's oil production has declined this year, offering a rare glimpse into the conflict's economic impact on one of Russia's most important sectors.
Russia's war with Ukraine is now in its fourth year. The conflict began after Russia launched a full-scale invasion in 2022.
Speaking at the St. Petersburg International Economic Forum, as first reported by OilPrice.com, Russian Deputy Prime Minister Alexander Novak said the country's crude oil output has fallen below where it stood at the start of 2026.
His comments appear to be the first time Moscow has publicly indicated that repeated refinery drone strikes from Ukraine are interfering with oil processing at home.
He said several refineries are unexpectedly out of service and that Russia is responding by routing as much crude as possible through its export system.
"Currently, Russia's oil production is indeed lower compared to the beginning of 2026," Novak said. "We have a number of refineries under unscheduled repairs. However, we are maximizing the use of the export infrastructure."
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Russia had already banned jet fuel exports through Nov. 30, 2026, after a gasoline export ban began on April 1. The measures point to rising concern inside Russia about protecting domestic fuel supplies as refinery facilities are hit by intensifying drone attacks from Ukraine.
Russia remains one of the world's largest oil producers. Charles Kennedy, author of the OilPrice.com report, notes that Ukraine has also targeted several fuel export terminals, aiming to prevent Russia from taking advantage of skyrocketing global fuel prices caused by the Iran war.
Ukrainian President Volodymyr Zelenskyy has been even more direct about the strategy behind the strikes. "We are bringing the war back home — to Russia — and that's only fair," he said in May.
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