Russia's crude oil production fell in May to its lowest level in a year, with Ukraine's record-setting drone campaign against oil infrastructure playing a major role, Bloomberg reported. The decline, now running for half a year, cuts into the mineral extraction tax — the main channel through which oil fills the federal budget that finances the war, the Russian-language Moscow Times noted.

Output slides for half a year, far below the OPEC+ quota

Russia averaged 9.009 million barrels of crude a day in May, OPEC's monthly report shows. Daily output last peaked in November at 9.38 million barrels and has shrunk every month since, losing roughly 370,000 barrels, the Moscow Times wrote. The May figure sits 690,000 barrels a day short of what the OPEC+ deal obliges Russia to pump, Bloomberg calculated. The data excludes condensate, and April's level was revised slightly lower.

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The Ukrainian strikes have been disabling oil storage and transportation capacity. That shortage, combined with underinvestment, reduces the volume of crude Russia extracts. Bloomberg observed that while the latest monthly drop marks a slowdown against previous months, it will likely keep weighing on oil markets. Oil prices stay elevated amid the continuing Middle East conflict, and Russia ranks among the world's three biggest crude producers whose barrels bypass the Strait of Hormuz, shut in practice since the Iran war erupted.

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A record month of strikes crushes refining

Ukraine sharply intensified its May campaign against Russian oil sites, logging at least 31 strikes on refineries, seaborne export terminals, and pipelines, Bloomberg counted — the highest monthly count since the full-scale invasion, as Kyiv works to cut the Kremlin's income from elevated crude prices. Because most strikes targeted fuel-producing facilities, Russian refining collapsed to its 2009 level in May. So far this month, Russia's refining runs have fallen to a two-decade low, EA Analytics, part of consultancy Energy Aspects, estimates.

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Russian crude reaches the sea through tunnels under a mountain ridge—and Ukraine hit the storage end near Novorossiysk

Exports rise while the budget's tax base shrinks

The gasoline shortage behind the fuel crisis in a number of Russian regions led producers to redirect more crude to export markets. The Baltic and Black Sea ports damaged in the first two months of spring have been repaired. Seaborne crude exports averaged 3.64 million barrels a day over the four weeks ending 31 May, Bloomberg's tanker-tracking data show. That compares with 3.17 million barrels daily over the four-week stretch to 17 April, when Ukrainian forces actively bombed ports and export terminals.

The Moscow Times notes that the export shift allows companies and intermediaries who retain significant sums from sales abroad to raise their incomes. The federal budget that pays for the war, though, is filled above all by the mineral extraction tax, so falling production hits government revenue directly.

Ukrainian drones set a major oil depot ablaze near the Russian Black Sea port of Novorossiysk overnight on 7-8 June 2026, in a strike confirmed by Ukraine's Unmanned Systems Forces (SBS). Residents reported a string of blasts and heavy smoke over the Grushovaya storage site, which feeds Russia's busiest oil-export port. Ukrainian forces hit two more targets in southern Russia the same night.

Drones spark a blaze at Novorossiysk's oil hub

The strike came before dawn. Residents of Novorossiysk, in Russia's Krasnodar Krai, reported about 50 blasts, then heavy smoke over the Grushovaya oil depot. Operators of the SBS's 1st Separate Center, working with Special Operations Forces (SSO) and other units, confirmed the hit. Ukraine's General Staff also confirmed the strike and said a fire broke out, with damage still being assessed. Russian officials claimed no one was hurt.

NASA's FIRMS satellite service detected abnormal heat at the site at 02:48 on 8 June. Ukrainian Telegram channel Exilenova+ began reporting the attack around 3 a.m., posting photos and videos of fire in the mountains above the city. OSINT Telegram channel Falcon insight pinpointed the location. Russian news Telegram channel ASTRA confirmed the burning tank farm from eyewitness footage shot about 11 km away.

What the Grushovaya depot feeds

The Grushovaya site is a transshipment depot for the Sheskharis terminal. Chernomortransneft runs it, under Russia's state pipeline monopoly Transneft. It sits in the Grushovaya Balka tract beyond the Markotkh Ridge, about 12 km from Novorossiysk. The tank farm holds more than 1.2 million m³ of fuel across dozens of tanks, on a site of about 212 hectares. SBS called it one of the largest oil-product stores in the Caucasus.

Novorossiysk is southern Russia's biggest oil-export hub, the Moscow Times reported. The port ships up to 700,000 barrels a day, and its terminals moved 19.8 million tonnes of oil products in 2025. That trade feeds Russia's budget, which bankrolls the war on Ukraine. The port has become a recurring target in Ukraine's strikes on Russia's Black Sea oil logistics.

Volgograd and a coastal radar also hit

The same night, Ukraine's General Staff said its forces struck the Krasny Yar oil-pumping station in Volgograd Oblast, where a fire broke out. Volgograd governor Andrei Bocharov claimed the blaze came from falling drone debris at the Zhirnovsk pumping station and was quickly put out, the Moscow Times reported. Ukrainian forces also hit a Russian radar station near Kabardinka in Krasnodar Krai, according to the General Staff.

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Not the first strike on Novorossiysk's oil chain

Ukrainian forces have hit this infrastructure before. Ukrainian defense outlet Militarnyi reported that drones struck the Grushovaya depot on 23 May 2026, when fire spread across much of the site. Strike drones also hit the Sheskharis terminal on 6 April, damaging oil-metering systems and shut-off valves at the loading berths. ASTRA said the wider complex was attacked in early March, early April, and on 22 May.