The
Russian invasion of Ukraine started with Russia restricting gas supplies to Europe to try to stop assistance going to Ukraine. It resulted in the closure of
Nord Stream 1, the refusal to activate
Nord Stream 2, the closure of the
pipeline through Poland and the reduction of gas in the
pipeline through Ukraine. It did not succeed and gave Gasprom severe economic problems.
Sanctions were imposed by the USA, the EU and other nations, to forbid or reduce the importation of gas, oil and associated products from Russia, including the introduction of a novel
price cap on crude shipped oil, designed to allow Russia to maintain production but limiting the revenue from oil sales. From 5 December 2022 the price cap has been set at US$60 per barrel. This was followed in 2023 with sanctions and a price cap on
Russian oil products, and the EU introduced
sanctions on natural gas. As part of the sanctions, an
embargo of importing ship-borne Russian crude and refined oil was introduced by the EU,
G7 countries and Australia beginning in December 2022, with a few exceptions for a limited time period. In May 2023 Lukoil completed the sale of its
Priolo Gargallo refinery in Sicily, as it was no longer able to import Russian crude oil and the plant was configured to only process the Russian Ural grade oil. In October 2023 Bulgaria attempted to force Lukoil to sell its
Lukoil Neftohim Burgas refinery. A US Treasury report in May 2023 highlighted that Russian oil exports were continuing to rise, providing stability in the world market, as planned, whilst Russia's revenue was being restrained by the price cap to $5–6 billion per month, compared with $8–15 billion a month in 2022. Russia has changed their tax rules to levy more tax on oil producers to help offset falling revenue, to the detriment of investment. Market participants and geopolitical analysts now acknowledge that the price cap is accomplishing both of its goals. Gas production in Russia has fallen, as gas exports which in 2021 were 185 bcm, have fallen in 2023 by around 70% with the loss of the European market. Russia has sought means to get around the sanctions including investing heavily in hundreds of old tankers, to transport crude oil to new markets in the Far East, especially
China and
India, to replace lost European markets. G7 sanctions keep being adapted to restrict Russia's options and keep Russia's revenues below the $60 per barrel price cap level for crude oil whilst keeping the oil flowing. In December 2023 the Russian government ordered oil and gas producers to install anti-drone protection at their installations, to ward off
Ukrainian drone attacks. In January 2024, Ukrainian drone strikes hit at least four oil and gas terminals across Russia, including the
Tuapse oil terminal on the Black Sea coast and the
Ust-Luga oil terminal on the Baltic Sea coast. Ukrainian journalist
Illia Ponomarenko said that "Russia finances its military from oil exports. You can't persuade countries like India and China to stop buying it. So you knock out Russian oil refineries."
Transneft, which pumps 90% of Russian oil, reported that 2023 crude oil exports were: • China via pipeline 40 million tons; no change • Black Sea via tankers 30m tons; +3.1% • Baltic Primorsk via tankers 44.4m tons; +6.5% • Baltic Ust-Luga via tankers 34m tons; +9.0% • Pacific Kozmino via tankers 42.8m tons; +9.4% • Druzhba pipeline to Europe 10m tons; -60.0% Overall exports were down 6.5% in 2023 and over 90% of sales went to China and India. In March 2025, U.S. President
Donald Trump threatened "
secondary sanctions" on imports from countries buying Russian oil, saying: "That would be that if you buy oil from Russia, you can’t do business in the United States. There will be a 25 percent tariff on all oil, a 25 to 50-point tariff on all oil." In June 2025, a majority of
US senators supported secondary sanctions against Russia that would impose 500% tariffs on countries purchasing Russian oil, gas, uranium, and other export goods.
2025-2026 crisis Following historic high domestic prices on gasoline and in a bid to support summer travel and grain harvesting Russia imposed an export ban on gasoline for August and September 2025. In August 2025 Ukraine intensified their attacks on Russia's oil industry, striking at least seven oil refineries in e.g. Novokuibyshevsk, Syzran, Ryazan and Volgograd reducing Russia's refining capacity by an estimated 13%. Also two oil pumping stations of the
Druzhba pipeline were struck interrupting its operation. An oil depot near
Sochi airport and fuel trains close to the front lines have been struck as well. By 28 August 2025 Ukraine's campaign to strike at Russia's petroleum industry had hit ten oil refineries and was estimated by
Reuters to have disrupted Russia's refinery capacity by at least 17% or 1.1 million barrels a day. The effect was a
fuel crisis in Crimea and both southern and far eastern regions with price surges and dry gas stations. In September 2025 the
International Energy Agency stated that Russia's revenues from oil product exports had in August declined to five-year lows, contributing to Russia's economic slowdown. Acknowledging Russia's strained energy system president
Vladimir Putin pointed to Russia's
coal reserves to offset its gas shortage, insufficient infrastructure and under-developed grid economy. Following an attack on the
Tuapse oil terminal in early November 2025 the
Kyiv Post cited a source in the
Security Service of Ukraine for a claim that the attacks on Russia's petroleum industry is a deliberate effort to reduce Russia's income from oil exports that contributes to funding its war in Ukraine. By 25 March 2026
Reuters calculated that 40% of Russia's capacity for export of crude oil was shut down due to intensified Ukrainian attacks on all three of Russia's Western oil export ports namely
Primorsk and
Ust-Luga on the
Baltic Sea and the
port of Novorossiysk on the
Black Sea as well as on the overland
Druzhba pipeline. On 27 March 2026 Russia's government banned export of gasoline effective as of 1 April with the ban expected to last until July 31. == Russia's oil refineries ==