Information on the current losses of Russia due to sanctions as of 22.07.2026.
1. Ukrainian drones attacked Wildberries logistics centers and an oil depot in southern Russia.
– On the night of July 21, Ukrainian drones attacked several targets in the southern regions of Russia. Preliminary reports indicate that one of the largest Wildberries logistics centers in Krasnodar was hit. Videos published by local residents show a large-scale fire on the complex’s grounds.
– Another Wildberries logistics center in Nevinnomyssk, Stavropol Krai, was also attacked. According to Russian authorities, the UAV attack led to a fire at the warehouse complex.
– Additionally, an oil depot in Armavir, Krasnodar Krai, was hit. According to city hall information, a fire broke out on the site after an attack by 16 drones.
2. Damages from the fire at Wildberries warehouses exceeded the annual budgets of 53 Russian regions.
– The fires at Wildberries logistics complexes in the Moscow and Tambov regions, which occurred after the drone attacks, may become some of the most expensive throughout the war.
– Estimates put total damages at at least 180 billion rubles. According to Forbes, two destroyed logistics centers with an area of approximately 350,000 square meters are valued at around 30 billion rubles, and the cost of burned goods is at least 150 billion rubles. This is considered a conservative estimate, while the real value of destroyed inventory may reach 170-230 billion rubles.
– Even the minimum damage estimate of 180 billion rubles exceeds the annual budgets of 53 Russian regions.
3. Ukraine strikes at Russia’s economy by attacking giant warehouses.
– Ukrainian drone strikes on Wildberries warehouses are forcing Russian businesses to reassess logistics, increasing company costs and heightening inflation risks.
– Major Russian grocery retailers, including X5 Retail Group and Lenta, have started restructuring logistics chains, moving away from large distribution centers in favor of a network of smaller regional warehouses. This is meant to reduce the risk of large-scale disruptions in the event of new strikes. One of the largest retail chains plans to create facilities of 10-30 thousand square meters instead of logistics hubs of 100-200 thousand square meters.
– Additionally, companies are designing warehouses with separate fire- and explosion-resistant blocks, using stores as local order fulfillment centers, and increasing reserves at suppliers.
– The Russian government is aware of business concerns following fires at Wildberries warehouses. Representatives of several companies have already approached the authorities, and systematic attacks on logistics infrastructure could significantly impact the economy, especially due to insurers’ reluctance to cover such risks.
– Despite promises of support for Wildberries sellers, it will not be complete. Major creditors offered affected merchants credit restructuring, but many sellers fear their business has vanished forever.
– The financial impact has been exacerbated by changes to agreements with sellers made by both Wildberries and Ozon weeks before the attacks, which shift the responsibility for losses due to force majeure, including drone attacks, onto the sellers.
4. Russia has restored less than half of the drone-damaged refineries.
– Russian oil companies have managed to restore less than half of the refining capacities damaged by Ukrainian drone strikes.
– After unscheduled repairs, refineries with a total capacity of about 40 million tons per year have returned to trading, while plants with a total capacity of 45 million tons remain shut down.
– In June and July, drone attacks suspended at least 10 Russian refineries, including the Omsk Refinery, Nizhnekamskneftekhim, Moscow Refinery, and Taneco — some of the country’s largest refineries.
– Due to widespread damage, oil processing volumes in Russia previously fell to a 20-year low — about 3.5 million barrels per day. Currently, the gasoline shortage situation is somewhat improving thanks to the gradual commissioning of certain enterprises, but oil companies are forced to actively spend fuel reserves. Gasoline stocks have already decreased from 1.7 million to 1.5 million tons.
– Industry sources estimate that full restoration of gasoline and diesel fuel production will take at least two months, provided there are no new strikes.
– The Moscow Refinery suffered the most damage, with repairs expected to last until 2027 and potentially costing about $1 billion.
5. Russia has suspended OFZ auctions due to difficulties in raising funds to cover the budget deficit.
– The Russian Ministry of Finance has suspended auctions for placing federal loan bonds (OFZ) to stabilize the market situation after unsuccessful attempts to raise funding. The decision casts doubt on further easing of monetary policy.
– In the third quarter, the ministry planned to raise 1.5 trillion rubles through the sale of OFZ to finance the budget, whose deficit is rapidly growing due to the war. However, the auction on July 8 was canceled early, and the next ended without placement due to the lack of acceptable bids.
– Since the beginning of the month, the Ministry of Finance has managed to sell OFZ worth only 10 billion rubles. After the key rate was cut to 14.25%, the central bank stated that the opportunities for further easing of monetary policy are narrowing.
6. Russia transfers fuel from Siberia to Moscow to avoid a shortage.
– Russia is forced to reroute gasoline supplies from Siberia and the Urals to the Moscow region, as well as increase fuel imports from Belarus, to prevent a shortage in the capital.
– At the beginning of July, gasoline production in Russia fell to a level covering only about 65% of average seasonal demand. The cause was months-long Ukrainian drone attacks on refineries, causing several refineries to operate intermittently or be under repair.
– To compensate for the shortfall, gasoline from the Urals and Siberian refineries, including the Achinsk Refinery in the Krasnoyarsk Territory, began to be transferred to Moscow.
– According to traders, additional supplies to the capital region amount to hundreds of thousands of tons. Besides domestic redistribution, Russia is also increasing gasoline imports from Belarus.
– Due to the fuel crisis, Moscow has also started purchasing gasoline from India and Kazakhstan.
– The Moscow region consumes about 6 million tons of gasoline annually, making ensuring the capital’s supply a priority for Russian authorities, even at the expense of reducing supplies to other regions.
7. Indian refineries support Russian oil exports despite US sanctions.
– Indian refineries continue to actively purchase Russian oil, helping Russian exporters maintain high shipment volumes despite US sanctions.
– In June, India imported over 2.3 million barrels of Russian oil per day, and in July, shipments remain at nearly the same level. This allows Russia to avoid accumulating unsold oil and maintain sea exports near record figures.
– Despite US sanctions against several major Russian oil companies, buyers have been scarcely deterred. Following the introduction of restrictions at the end of last year, a sharp drop in exports was expected, but the use of intermediaries made it possible to maintain high shipment volumes.
– In the four weeks to July 19, the average sea export volume of Russian oil was 4.16 million barrels per day, only slightly below the historic peak recorded at the beginning of the month. In the week to July 19, 37 tankers shipped 27.73 million barrels of Russian oil, or 3.96 million barrels per day.
– One of the main reasons for the persistent demand is the sharp reduction in the price of Russian oil. Its price has been decreasing for 13 consecutive weeks and now stands at just over half of the mid-April peak level, making Russian crude particularly attractive to Indian refineries.
8. EU strips Venice Biennale of funding due to Russia’s participation.
– The European Commission has ultimately canceled a €2 million grant for the Venice Biennale due to the decision to allow Russia to participate in the exhibition.
– European Commission spokesman Thomas Renier stated that cultural events funded by European taxpayers should support democratic values, open dialogue, diversity, and freedom of expression. According to him, modern Russia does not adhere to these principles.
– The Venice Biennale opened in May, and for the first time since the full-scale invasion of Ukraine in 2022, Russia was allowed to participate in the event. This decision faced sharp criticism from Ukraine and EU leadership.
– The Ukrainian side accused the organizers of undermining the sanctions policy, and the international jury of the Biennale resigned in protest against the opening of the Russian pavilion.
– The exhibition organizers denied breaching EU rules, emphasizing that the Biennale is based on principles of openness, dialogue, and rejection of censorship. However, the European Commission found these arguments unconvincing.
– Biennale representatives stated that they anticipated such a decision and intend to challenge the cancellation of funding in court.
