Ukraine bombs Russian oil refineries when Russia needs oil money

It's been a bit of a hit this week in the Russian oil world.

Tuesday, Bloomberg reported The country's oil exports reached 3.7 million barrels per day, which is their highest level this year. This comes even as OPEC+ colleagues try to cut supplies to help sustain the effects of lower prices US crude production rises under control. Then, on Wednesday, the Associated Press reported that Ukrainian forces attacked three oil refineries in two days, including the largest facility operated by Rosneft, Russia's largest oil company.

Global oil prices remained little changed this week.

“We are systematically implementing a detailed and calculated strategy to reduce Russia’s economic potential,” a Ukrainian source told Reuters. Basically: Ukraine is trying to expropriate Russian oil money that Russia needs to keep Ukraine going. Russia has spent a lot on its war effort, even military expenditures One of the only things helping its constrained economy continue to grow.

The attacks also come days before Russians head to the polls to cast their votes in the presidential election It is sure to keep Vladimir Putin in power. Economic stability has been one of his most important sales pitches, albeit only largely so Very much captive public.

Russia and Ukraine exchanged drone and missile strikes Targeting each other energy infrastructure Throughout the recent escalation period Their conflict has been going on for a decade It kept going. Rosneft and Lukoil, the other major Russian oil company whose facilities were targeted this week, said damage was limited even if the fires knocked some equipment out of commission.

But given the importance of oil money to… Russia's sensitive economic positionIt is very likely that those facilities will remain open.