Russia’s Oil Revenue Drops by a Third as Export Volumes Fall to 3 Million Barrels.

Escalating Strikes on Russian Logistics and Oil Infrastructure

According to UATV: Ukraine has significantly ramped up attacks on Russia’s logistics networks and oil infrastructure, directly cutting into Moscow’s earnings from crude exports. Oleh Ustenko, an economist who served as an advisor to Ukraine’s president from 2019 to 2024, highlights a severe fuel shortage inside Russia and points to the compounding effects of international sanctions on the country’s economy.

Export Decline and Its Broader Impact

Before the strikes on its ports began, Russia was shipping roughly 5 million barrels of oil per day by sea. That figure has now dropped to an estimated 3 to 3.5 million barrels. The reduction in export volumes has been accompanied by a sharp decline in oil prices. Where crude once traded above $100 per barrel, it fell dramatically following a meeting of the G7 nations.

A notable example of the campaign against Russian oil infrastructure occurred on June 21, when the 'TES-Terminal-1' oil terminal in Kerch was hit. Commenting on the situation, Oleh Ustenko noted that

“when Russia was able to sell 3 to 3.5 million barrels, the price of oil was above $100 per barrel.”

The drop in oil export revenue could have far-reaching consequences for Russia’s economy, given that the oil and gas sector remains a primary source of budget funding. The intensification of strikes on oil infrastructure may signal a shift in Ukraine’s military strategy, which in turn is influencing global energy markets and pricing dynamics.

These developments underscore the critical role energy resources play in the ongoing conflict, with control over them proving decisive for both nations.