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Finance

Moscow oil refinery damaged in Ukrainian drone attack, mayor says

Published by Global Banking & Finance Review

Posted on June 16, 2026

4 min read

· Last updated: June 16, 2026

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Ukrainian drone strike halts operations at Moscow oil refinery, sources say

Impact and Consequences of the Ukrainian Drone Strike on Moscow Oil Refinery

Details of the Attack

June 16 (Reuters) - A Ukrainian drone attack started a fire at the refinery that is the largest fuel supplier to the Moscow region on Tuesday, and two industry sources told Reuters that it had halted operations.

The sources said the strike on Gazprom Neft's refinery in southeast Moscow damaged a primary refining facility that accounts for 53% of the plant's capacity.

A second unit is expected to resume operations soon, they said, speaking on condition of anonymity.

Immediate Aftermath

Witness footage verified by Reuters showed a fierce blaze and dense black smoke rising from the refinery after the attack.

Local emergency services later said the fire had been put out and had not affected operations - information that was contradicted by the sources, who spoke on condition of anonymity.

Moscow Mayor Sergei Sobyanin said a facility at the site had been damaged, without giving further details.

Broader Effects on Russian Oil Industry

Additional Attacks and Restrictions

In a separate development highlighting the pain that Ukrainian drone strikes are inflicting, Russian oil producer Tatneft announced nationwide caps on purchases at its fuel stations following an attack on its refinery in Tatarstan last week.

Ukraine's Intensified Attacks on Refineries

UKRAINE HAS INTENSIFIED ATTACKS ON REFINERIES

Seeking to hit a major source of Russia's war funds, Ukraine's attacks on refineries have doubled since the start of 2026, leading to full or partial shutdowns of oil processing and a decline in gasoline, diesel and jet fuel output, according to official data, social media, and Reuters calculations.

The strategy is increasingly straining Russia's domestic fuel market.

A growing number of regions have reported localised supply issues. The energy ministry sought on Monday to reassure farmers that enough fuel would be available for the critical summer season when they need it for harvesting.

Statements from Officials

Ukrainian President Volodymyr Zelenskiy said the Moscow refinery was hit from a distance of 500 km (310 miles), illustrating the reach of Ukraine's long-range strikes.

"This is a just response to Russian strikes – and to the dragging out of a war that must be ended," he said on X. He was attending the G7 summit in France, where he has sought to show U.S. President Donald Trump and European allies that Ukraine's battlefield fortunes have improved as Kyiv pushes for more support. 

Operational and Market Impacts

Production and Supply Chain Disruptions

The Moscow plant, which has been targeted multiple times, processed 11.6 million metric tons of oil in 2024, producing 2.9 million tons of petrol and 3.2 million tons of diesel, according to the latest available data.

Gazprom Neft did not immediately respond to a request for comment.

Long lines of motorists queueing in Russian-controlled Crimea, southern Krasnodar region, and elsewhere underscore the sensitive domestic fallout from Ukraine's strikes.

Crimea is among the regions where restrictions on fuel sales have been imposed this month to try to preserve stocks.

Company Responses and Regional Effects

On Tuesday, Tatneft - Russia's fifth-biggest oil company and third-largest refiner - said it was introducing restrictions on fuel purchases at its hundreds of stations across Russia, the first retailer to implement nationwide caps.

A Tatneft station in Serpukhov district, south of Moscow, was limiting sales to 20 litres (5.28 U.S. gallons) of gasoline per car or 40 litres of diesel and accepting only cash, according to a Reuters witness.

Two industry sources told Reuters this week that Tatneft's TANECO oil refinery in Tatarstan had suspended crude processing following a drone attack on June 12.

Supplies have also been tight this month in the Russian-controlled  region of Donetsk in eastern Ukraine. Some gas stations in Donetsk city had no fuel on Tuesday, while drivers were queuing for up to three hours to refuel at others. 

“Everyone’s saying the drones are hitting the refineries and nothing is getting to us,” said one driver, Darya, who was so low on fuel she feared having to walk home.

Reporting and Editorial Credits

(Reporting by Reuters; Writing by Alessandra Prentice, Mark Trevelyan and Gleb Bryanski; editing by Barbara Lewis)

Key Takeaways

  • The drone strike targeted Gazprom Neft’s largest refinery in Moscow’s Kapotnya district; no casualties occurred and emergency crews are responding, per Mayor Sobyanin.
  • The refinery processed 11.6 million tons of oil in 2024, generating 2.9 million tons of gasoline and 3.2 million tons of diesel, underscoring its strategic importance.
  • Drone attacks on Russian refineries have doubled in 2026, contributing to refinery shutdowns and reduced fuel output, pushing down national refining throughput to its lowest levels since 2009.

Frequently Asked Questions

What happened at the Moscow oil refinery?
A Ukrainian drone attack damaged a facility at the Moscow oil refinery owned by Gazpromneft.
Were there any casualties in the attack?
No casualties have been reported following the drone attack, according to Moscow's mayor.
Has the refinery's operation been affected?
It is not clear whether the refinery's operations have been affected. No official details have been released.
How significant is the Moscow oil refinery?
It is the biggest refinery in the Moscow region, processing 11.6 million tons of oil in 2024.
Have drone attacks on Russian oil refineries increased?
Yes, the number of drone strikes on Russian refineries has doubled since the start of 2026.

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