Ukraine has intensified its long-range drone campaign against Russian energy infrastructure, recently striking a major oil port in St Petersburg. These operations target the financial foundations of the Kremlin's military effort while embarrassing Vladimir Putin during high-profile international events.

The 12-mile gap between Putin's summit and the St Petersburg oil port

In a calculated move, Ukraine launched a massive drone attack on a major oil terminal on the Gulf of Finland just hours before the start of the St Petersburg International Economic Forum. This facility is a critical node in Russia's energy exports, handling 12.5 million tonnes of fuel annually. As the report says, the strike occurred while Vladimir Putin was attempting to project economic resilience under the forum's theme of "Pragmatic dialogue - the path to a stable future."

The proximity of the attack is particularly telling, as the targeted oil terminal is located only 12 miles from the forum venue. The ability of Ukrainian drones to penetrate this airspace suggests a significant failure in the air defense networks surrounding one of Russia's most important cities during a high-security international event.

From NORSI to Ryazan: The cost of losing 5% of refining capacity

The St Petersburg strike is part of a broader, systemic campaign to degrade Russia's refining capabilities. According to the source, Ukraine has repeatedly targeted deep-territory infrastructure, including the NORSI refinery near Nizhny Novgorod, which has a capacity of 16 million metric tonnes annually and suspended operations on April 5. Other critical hits include the Perm refinery, which processed 12.6 million metric tonnes in 2024 and halted operations on May 7, and the Ryazan refinery, which accounts for nearly five per cent of Russia's total refining volumes.

This strategy represents a shift toward ecconomic attrition. By targeting refineries in Samara, Ufa, and the Ust-Luga complex, Kyiv is attempting to choke the fuel supply and export revenues that fund the Russian military. This mirrors a growing trend of "asymmetric warfare" where the goal is not to seize territory, but to make the cost of the war unsustainable for the Kremlin.

The £120 million hit to the corvette Boykiy and Primorsk gateways

Beyond refineries, Ukraine is targeting the Russian Navy and export gateways to isolate the Russian economy. Recent strikes hit the naval base of Kronstadt, where the £120 million corvette Boykiy was among up to four ships damaged. additionally, Ukrainian drones have targeted the Primorsk export terminal, one of the largest oil gateways for the Russian Federation, as well as ports on the Black and Baltic Seas.

These maritime attacks serve a dual purpose: they degrade the Russian Navy's operational capacity in the Baltic and Black Seas while simultaneously threatening the physical infrastructure required to move oil to global markets. President Volodymyr Zelensky has described these actions as a "fair" response to Russian aggression, signaling that Kyiv intends to scale up the intensity of these retaliatory hits.

Russia's Finance Ministry and the battle over military budget cuts

The physical damage to oil hubs is compounding a growing fiscal crisis within the Kremlin. As reported by Bloomberg, the Russian Finance Ministry and the central bank have warned that the government's budget deficit could reach dangerous levels if current military spending persists. This has sparked an internal power struggle between finance officials and the Ministry of Defence.

While some policymakers are proposing spending cuts to stabilize the economy, senior Defence Ministry figures argue that reducing military expenditure would harm the numerous businesses that now depend on state military contracts.. According to the report, Vladimir Putin has instructed Finance Ministry officials to seek savings in other budget areas before considering any reductions to the defense budget.

The missing Kremlin response to the Gulf of Finland breach

Despite the scale of these attacks, several critical questions remain unanswered. The source does not provide an official response from the Kremlin regarding the specific failure of air defenses 12 miles from the St Petersburg International Economic Forum, nor does it clarify if the damage to the corvette Boykiy has rendered the vessel permanently inoperable. Furthermore, while the report details the Ukrainian perspective and internal Russian leaks, it remains unclear exactly how many drones are being deployed in these waves to bypass Russian radar.