Kyiv’s intelligence chief is reporting significant damage to Russia’s economic infrastructure as a result of Ukrainian strikes targeting fuel and energy facilities. According to Kirill Budanov, head of the ukrainian Defense Ministry’s Main Intelligence Directorate, these attacks have already taken a noticeable toll on Russia’s oil refining capacity and overall economic performance, exacerbating a recession that began in 2023. while a full economic collapse hasn’t occurred, Budanov suggests sustained pressure could impact russia’s ability to fund its war effort and perhaps alter its approach to the conflict in Ukraine. The assessment comes amid continuing calls for increased Western military aid to Ukraine.
Ukrainian strikes targeting fuel and energy infrastructure within Russia are inflicting significant economic damage, with the effects already clearly visible in the country’s economic performance, according to Kyiv’s top intelligence official. The attacks come as Ukraine continues to seek Western support to bolster its defense capabilities and counter Russia’s ongoing invasion.
Kirill Budanov, head of the Ukrainian Defense Ministry’s Main Intelligence Directorate (GUH), stated that approximately 21 percent of Russia’s total oil refining capacity is currently offline, directly impacting the production of gasoline and other fuels.
“Do you understand the scale of the losses? This is a huge amount. The Russian economy is built on oil, gas, and – let’s say – gold. There is practically nothing else,”
Budanov explained. He added that Russia’s economy has been in a state of steady recession since the spring of 2023, though he stopped short of calling it a full-blown collapse, emphasizing that “problems are already emerging.”
The intelligence chief specifically addressed the Russian federal budget for 2026, which he described as potentially catastrophic for any nation. According to Budanov, nearly all state programs have been cut, with the vast majority of resources now directed towards military spending. “No country can normally develop if it spends almost half of its expenditures on war. It is simply impossible,” he asserted.
While acknowledging that Russia’s economic difficulties are not currently having a substantial impact on the battlefield situation, Budanov believes they “will absolutely affect Moscow’s position regarding the end of the war.”
Russia’s economic collapse has not yet occurred, but the current trend raises serious long-term questions.
“If the war continues like this, and Russia continues to decline at this rate, it could go on for a long time. The question is whether Russia is willing to wait that long. The problems are already significant,” Budanov said. The assessment suggests that sustained economic pressure could eventually force a shift in Russia’s war strategy.
Budanov further elaborated on the budgetary constraints, stating that the cuts to state programs are widespread and severe. This reallocation of funds towards the military, he argued, is unsustainable in the long term and will hinder Russia’s overall development. The development underscores the growing strain on the Russian economy as the conflict in Ukraine continues.
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