Ukraine is plunging aggressor Russia deeper into an oil crisis the scale of which the Kremlin could not have foreseen. Russian dictator Vladimir Putin knows he is losing the war, but instead is provoking an even greater escalation. This is the conclusion of the renowned analyst and editor of The Telegraph, Ambrose Evans-Pritchard.
Points of attention
- Putin's desperate actions, such as dropping drones and missiles on Ukrainian cities, are failing to achieve any strategic goals in the war.
- Analysts predict a further collapse in oil production, posing a significant threat to the Kremlin's foreign exchange earnings and financial stability.
Ukraine managed to outsmart Putin
As the analyst notes, the Ukrainian Armed Forces' almost daily strikes on Russian oil refineries have de facto paralyzed a large part of the enemy's energy sector.
Recently, Naftogaz published data that 38% of the aggressor country's main oil refining capacities are not operating.
This was the turning point in Russia's war against Ukraine.
The international community was particularly shocked by the attack on the Antipinsk Refinery in Western Siberia, as Ukrainian drones traveled two thousand kilometers from the front line.
"Russia cannot protect these assets. This is shocking to many, because they did not believe that Ukraine was capable of such deep strikes," former Ukrainian Defense Minister Andriy Zagorodniuk said in a statement on this matter.
Putin responds by dropping hundreds of drones and dozens of missiles on peaceful Ukrainian cities and villages, but even in this way the Kremlin does not achieve any strategic goal.
We must also not forget that the summer offensive of the Russian army in Ukraine completely failed. This is another important factor in this war.
According to Goldman Sachs analysts, the decline in oil prices will trigger an even greater collapse in production — up to 7.5 million barrels per day.
For the Kremlin, this means a reduction in foreign exchange earnings and fiscal collapse.
