WSJ: Ukrainian Drones Are Dealing A Blow To Russia's Economy

The damage is estimated at more than $25 billion.

Ukraine is increasingly using long-range drones to strike at the Russian economy. The targets include oil refineries, export terminals, logistics centers, and other facilities of strategic importance. The consequences of the attacks are already being felt far beyond the front lines, writes The Wall Street Journal.

The blow to the oil industry has been particularly severe. In August, oil refining in Russia fell to 3.8 million barrels per day, compared with 5 million a year earlier. A fuel shortage emerged in the country, forcing authorities to impose restrictions and take emergency measures.

Russia began importing gasoline, including from India, relaxed environmental requirements for fuel, and banned diesel exports. Since the beginning of the year, gasoline prices have risen by about 19%, and inflation has reached about 6%.

Russian e-commerce has also been hit hard. More than 30 attacks on Wildberries and Ozon facilities led to major fires. Damages are estimated at more than $10 billion, while losses from lost sales amount to at least $12 billion.

“The consequences of the Ukrainian strikes are becoming increasingly felt by the Russian economy,” writes The Wall Street Journal.

The attacks have also affected the banking sector. For example, VTB has significant financial exposure related to Wildberries, and the bank’s shares have lost about a quarter of their value since the beginning of the year. At the same time, demand for cash is rising in Russia, and net withdrawals of bank deposits were recorded in the second quarter amid communication disruptions.

Ukrainian strikes on targets in the Black and Azov Seas have also complicated grain exports. Wheat shipments in August fell by nearly 50% compared to last year and dropped to their lowest level since 2010.

The aviation sector has also been affected. In August, 993 airport closures were recorded in Russia—roughly five times more than before.

Putin estimated the total damage from Ukrainian attacks at about 1% of Russia’s GDP, or roughly $25 billion, and promised support to affected companies. However, the authors note that the systematic strikes are gradually putting additional pressure on the economy, which is already showing signs of slowing down.

You can support the website Charter97.org

MULTI-CURRENCY ACCOUNT FOR ASSISTANCE:

Bank's name: Bank Millennium S.A.
Address: ul. Stanislawa Zaryna, 2A, 02-593, Warszawa
IBAN: PL97116022020000000216711123
SWIFT: BIGBPLPW
Name of the account holder: Fundacja “KARTA ‘97”
Purpose/title of payment: Donation for statuary aims

You can contact us by the e-mail charter97@gmail.com