Ukraine targets Russian economy via high-tech refinery strikes

Ukraine has adopted a new tactic in its conflict with Russia, focussing on targeting refineries, particularly those that are difficult to repair. These efforts are aimed at crippling the Russian economy, which has remained resilient despite global sanctions.

There's been a noticeable shift in Ukraine’s strategy, with a greater use of drones powered by artificial intelligence to strike at refineries, moving away from attacks on oil depots.

"Noah Sylvia, an analyst at the Royal United Services Institute, mentioned in an interview with CNN that they target facilities requiring many Western technologies, access to which Russia is limited"

The change in tactic is noticeable and effective. Helima Croft, the managing director and global head of commodity strategy at RBC Capital Markets, observed that Ukraine aims to cut the financial resources fuelling the Russian war effort through these means.

The new strategy yields much better results than previous attacks on randomly selected refineries. The impact of such actions is felt not only within Russia but also on the global markets.

Analysts indicate that these attacks have decreased Russia's gasoline production by several percentages, compelling Moscow to reduce fuel exports. Sustaining this situation could adversely affect Russia's budget.

Experts believe such attacks could have a larger impact on the Russian economy than the current sanctions. As Helima Croft points out, sanctions have not extensively targeted the energy sector, which Russia heavily relies on to continue its military actions.

"We need to minimize the budgetary impacts on Russia as much as possible, effectively cutting off resources to Putin," said Wasyl Maluk, head of the Ukrainian intelligence service SBU.

Ukraine claims that its attacks have reduced the efficiency of Russian refineries by 12 per cent. Meanwhile, Reuters reports a figure of about 14 per cent. Russia acknowledges that some of its processing capacity has been compromised, leading to a temporary export ban on Russian gas to prevent domestic price surges.

To target refineries located far from the Russian border, Ukrainians are using drones with a longer range and enhanced capabilities. CNN learned from a source familiar with the matter that some of these drones utilize artificial intelligence algorithms, aiding in navigation and avoiding signal interference.