Russia's stock market has plummeted to a three-year low, piling pressure on Vladimir Putin as Ukraine intensifies long-range drone strikes on critical oil facilities — part of a new strategy of preemptive attacks designed to force Moscow into negotiations.
Ukrainian President Volodymyr Zelenskiy announced the shift in his evening address on Wednesday, saying he had instructed intelligence and military forces "to act preemptively against facilities Russia uses to expand its war effort." The move comes as Kyiv ramps up assaults on energy infrastructure, including oil refineries near Moscow.
“Russia's stock market hits three-year low as Ukraine launches preemptive drone strikes on oil facilities, worsening fuel crisis.”
On Wednesday alone, Ukrainian drones knocked out power in the biggest city in Russian-held Crimea and targeted facilities in central and southern Russia. The Moscow oil refinery, one of the country's key fuel suppliers, will be offline for at least six months after sustaining extensive damage in the attacks, according to industry sources. The strikes are deepening a fuel crisis across the world's largest country.
Russia's production of petroleum products and coke dropped 13.5% year-on-year in May, rare official data published on Wednesday showed — accelerating from earlier declines. Moscow has stopped publishing much of its oil production and export data since its full-scale invasion of Ukraine in 2022, making independent verification difficult.
The market turmoil and mounting economic costs are raising questions about whether the war is becoming unsustainable for Putin. The Channel 4 News programme The Fourcast Indicators, featuring Matt Frei, Mark Urban, and professor Nina Khruscheva of The New School in New York, explored whether Putin is running out of men and money — and whether, believing time is no longer on his side, he will escalate.
With Ukraine now taking the fight to Russia's energy heartland and the Kremlin facing its worst stock market performance in three years, the pressure on Putin is intensifying. But the question remains: will he double down or seek a way out?