Ukrainian strikes shut 40% of Russia's oil refineries, causing billions in damage

Ukrainian military intelligence reports that Ukrainian attacks have shut down 15 of Russia's 38 major oil refineries, causing over $23.2 billion in damage and creating supply gaps that cannot currently be closed. The HUR assessment, based on late September 2026 data, shows crude processing in affected plants fell 55.4 percent since the start of the year. Twelve additional refineries operate at reduced capacity. The damage nearly equals the sector's total 2025 revenue of $26.6 billion. The Volga, Central, and Southern federal districts are hardest hit, with five key plants representing a third of capacity severely disrupted. Russia has increased output at distant refineries, but transport shortages and postponed maintenance hinder replacement efforts, prompting opaque fuel imports to bypass sanctions.