Ukraine Escalates Strikes on Russias Energy Sector, Disrupting Refining Capacity

Highlights:

• The drop came despite uranium prices holding steady, raising concerns about valuation after the stock’s strong recent run.
• Investors also reacted to broader market volatility and profit-taking in energy stocks, adding pressure on PDN’s share price.

Kyiv Steps Up Pressure on Moscow’s War Economy

Ukraine has intensified its strikes on Russia’s energy infrastructure in recent weeks, targeting oil refineries, fuel depots, and industrial sites that form the backbone of Moscow’s wartime financing. At the time of writing, Ukrainian forces have damaged at least 10 major refineries, disrupting roughly 17% of Russia’s total refining capacity — equivalent to around 1.1 million barrels per day.

Strategic Strikes Hit Key Facilities

On Sunday, Ukrainian drones reportedly hit a liquefied natural gas terminal in Russia’s Leningrad region and an oil refinery in Samara. A source within Ukraine’s Security Service (SBU) confirmed that it was behind the terminal strike, describing the move as an effort to block Russia’s use of a “shadow fleet” for covert oil and gas trade. By limiting such exports, Kyiv aims to reduce Moscow’s access to foreign currency needed to finance its invasion. The facility, with an annual capacity of 8.5 million tons, produces gasoline, diesel, and jet fuel, much of which is supplied to Russian troops.

Mounting Fuel Shortages Across Russia

The campaign has already begun to strain fuel supplies in several Russian regions, including Crimea and parts of southern Russia. Local media report long queues at petrol stations, rationing through coupons, and a growing trend of gasoline being sold only to businesses and state organisations.

Earlier this month, Kyiv also struck Russia’s largest southern refinery in Volgograd, along with major plants in Saratov and Rostov. The timing of these attacks is particularly disruptive, as they coincide with peak seasonal demand from farmers and the tourism sector. Analysts suggest Ukraine’s strategy is clear: to weaken Russia’s war economy by targeting its most critical revenue stream. With each successful strike, Moscow faces greater domestic pressure to maintain fuel supplies while sustaining its military campaign.

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