vladimir putin

Ukraine’s recent long-range drone strikes on the Gazprom Moscow refinery and increasing pressure on Crimea signal a strategic effort to cripple Russian energy revenues. While these successes revive hopes for a shift in the war’s momentum, analysts warn that approaching an “end game” increases the risk of significant escalation.

Why are Ukrainian drone strikes targeting Russian energy infrastructure?

Ukraine is using enhanced mid- to long-range drone capabilities to strike deep within Russian territory. A recent unprecedented attack on the Gazprom Moscow refinery triggered a massive explosion that sent black smoke over the capital. This strike, which destroyed a storage tank lid, is part of a broader campaign to target Russia’s primary source of income.

Grégoire Roos, director of the Europe, Russia and Eurasia programs at Chatham House, called the Moscow refinery attack “the most interesting development over the past year.” He told CNBC that Kyiv is demonstrating a clear understanding that it must hit Russia “where it hurts the most” by targeting energy revenues.

The strategy aims to make the war increasingly expensive for the Kremlin. By striking refineries and fuel supplies, Ukraine is attempting to disrupt the economic stability that supports the Russian military effort.

How is the Russian economy responding to the conflict?

Economic data from Russia shows a growing discrepancy between official reports and intelligence assessments. While the Bank of Russia reported a year-over-year inflation rate of 5.6% as of mid-June 2026, other sources suggest a much bleaker reality.

Swedish intelligence recently alleged that Moscow is manipulating economic data. According to these reports, the true inflation rate could be as high as 15%. This discrepancy suggests that the domestic economic pressure may be far greater than the Kremlin admits.

Beyond inflation, Roos noted that the number of bankruptcies among small and medium-sized enterprises in Russia is on the rise. This economic instability coincides with tumbling oil prices, which could further limit the windfall Moscow has relied on to fund the invasion.

What happens next in Crimea and the Donbas?

Ukraine is intensifying its efforts to isolate the Crimean Peninsula. Natia Seskuria, a senior fellow at the London-based defense think tank RUSI, told CNBC that the drone campaign is demonstrating to the Russian population that the war is no longer distant. She noted that Crimea is currently facing its worst fuel crisis in a long time due to persistent Ukrainian attacks.

On the land front, the conflict is narrowing toward specific territorial goals. Christopher Granville, managing director at TS Lombard, stated that Russia’s territorial agenda is now limited to the northwestern corner of the Donetsk oblast.

Granville identified the cities of Kostyantynivka and Lyman as being “about to fall” to Russian forces. However, he noted that major cities like Kramatorsk and Sloviansk remain under Ukrainian control. He estimated it could take Russia 12 months to reach its current territorial objectives.

Will political shifts change the course of the war?

Geopolitical tailwinds are currently favoring Kyiv. U.S. President Donald Trump has signaled the potential for renewed American support, while the election of Hungarian Prime Minister Peter Magyar has removed a significant hurdle to Ukraine’s European Union integration. Additionally, President Volodymyr Zelenskyy has shifted the diplomatic tone by proposing face-to-face talks with Vladimir Putin.

However, these shifts bring new risks. Russian Deputy Foreign Minister Sergei Ryabkov told the Tass news agency that Moscow has observed “signs of a shift” in the Trump administration’s position, reflecting growing frustration in the Kremlin.

The danger of a “no way back” scenario remains high. Grégoire Roos compared Putin’s current position to hiking at high altitude, suggesting that the Russian leader may find it impossible to withdraw from the war without losing political power. This dynamic keeps the risk of total escalation at the forefront of European security concerns.

Frequently Asked Questions

What is the primary goal of Ukraine’s drone strikes on Russia?
Ukraine is targeting energy infrastructure, such as the Gazprom Moscow refinery, to cut Russia’s ability to generate revenue from oil and fuel exports.

Is Russia facing an economic crisis?
While official Russian data shows 5.6% inflation, Swedish intelligence suggests the actual rate may be as high as 15%, alongside rising business bankruptcies.

How is the war affecting Crimea?
Ukrainian strikes on logistics and infrastructure have caused significant fuel shortages and supply suspensions in the occupied region.

What is the projected timeline for the Donbas conflict?
Analysts suggest it could take up to 12 months for Russian forces to reach their current territorial objectives in the Donetsk oblast.

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