Information on current Russian losses due to sanctions as of 23.10.2026.
1. Ukrainian drones attacked a data center of Russia’s tax service and the “Azot” chemical complex.
– On the night of October 23, Ukrainian Defense Forces attacked the data processing center of the Federal Tax Service of Russia in the city of Gorodets, Nizhny Novgorod region.
– There was also a continued attack on the “Azot” chemical complex of the company “Uralchem” in Berezniki, Perm Krai. The data center in Gorodets is one of the two main data processing centers of the Federal Tax Service of Russia, operating in mirror mode with the site in Dubna, Moscow region.
– There, tax data and other state registers are processed. The “Azot” complex occupies about 140 hectares and includes approximately 90 production buildings. The enterprise produces ammonia, nitric acid, ammonium nitrate, urea, and other chemical products.
– Nitric acid, in particular, is used in the production of explosives and propellants needed by the Russian military-industrial complex.
2. Russia plans to raise prices for gasoline and diesel to compensate for fuel import costs.
– The Russian Ministry of Energy proposed further increasing prices for gasoline and diesel by 2.1 rubles per liter to compensate oil companies for fuel purchases abroad.
– Due to sanctions, imported fuel costs more than global prices, considering premiums and delivery costs within Russia. Selling such fuel at current prices at gas stations results in losses of 13–18 rubles per liter for large vertically integrated oil companies, even taking into account government compensations.
– According to Ministry of Energy estimates, price increases by the end of the year could raise the cost of gasoline at major network gas stations by about 11%, or 7.1 rubles per liter compared to the current level. Summer diesel could rise by 10.7%, or 8.2 rubles per liter. An additional surcharge of 2.1 rubles per liter would provide oil companies with about 12 billion rubles in additional revenue monthly.
– The need to purchase fuel abroad is partly related to Ukrainian strikes on Russian refineries, which limit domestic supply. The authorities are essentially considering shifting part of the import costs and support for oil companies onto Russian consumers.
– According to Rosstat, as of October 19, gasoline in Russia has increased by 20.5% since the beginning of the year — 3.3 times more than the official inflation rate of 6.15%. Diesel fuel prices have risen by 13.4% during this period.
3. The price of Russian oil for tax calculations exceeded the budgeted level by 60%.
– In the first three weeks of October, the estimated price of Russian oil for taxation averaged 8,699 rubles ($103.4) per barrel — 11% higher than in September. This is approximately 60% above the level set in the federal budget.
– If oil prices and the ruble exchange rate remain unchanged until the end of the month, the October average will be about 8,387 rubles ($100.2) per barrel — the highest since March 2022. The 2026 budget calculations were based on a price of $59 per barrel and an exchange rate of 92.2 rubles per dollar, equivalent to 5,440 rubles per barrel.
– Rising global prices due to the war in the Middle East and supply disruptions increase the ruble cost of oil and support Russian budget revenues.
– However, the budget deficit remains significant. By the end of January–August 2026, it had already reached 2.5% of GDP, while the authorities predict around 3% for the entire year. To finance the war against Ukraine, Russia has also raised taxes.
4. Russian “Novatek” seeks new markets for LNG ahead of the ban on supplies to the EU.
– The Russian gas company “Novatek” is trying to find buyers for liquefied natural gas (LNG) in Turkey and Vietnam ahead of the import ban to the European Union from January 1, 2027.
– Discussions with the Vietnamese company PetroVietnam focus on initial supplies of 1 million tons per year, as well as participation in creating infrastructure for gas reception.
– Talks with Turkey concern possible energy supply deliveries. The EU ban forces Russian producers to seek alternative buyers instead of the usual European market.
– However, negotiations do not yet guarantee the conclusion of contracts, and redirecting exports requires new logistical routes and infrastructure. This increases costs and complicates the replacement of European buyers.
– For “Novatek,” reorienting to Asia becomes a necessary way to maintain export revenues. If agreements are delayed or new markets cannot accept sufficient volumes of gas, Russia risks losing some sales after the European ban is implemented.
5. India reduces purchases of Russian oil in favor of Middle Eastern oil.
– In September, India increased oil imports from the Middle East to 2.8 million barrels per day — the highest level since February. At the same time, supplies from Russia decreased by 14% compared to August, to 1.8 million barrels per day.
– The share of Russian oil in Indian imports fell from 46.6% to 33.5%. In August, the Middle East accounted for 32% of India’s oil imports. In September, local refineries more actively purchased Middle Eastern oil on the spot market, increasing deliveries through the Strait of Hormuz. Russian oil is losing its price advantage.
– Considering delivery, its cost has become comparable to Iraqi oil, and the premium to Brent has decreased to $1–2 per barrel compared to over $10 in previous months.
– With roughly equivalent prices, Middle Eastern suppliers benefit from shorter delivery routes. It is expected that in the coming months, India’s demand for Russian oil will remain restrained.
6. China, with the help of Russian technology, has developed a strike drone that is launched from a multiple launch rocket system.
– According to available data, the Russian Tula plant “Splav” transferred technical documentation for a reconnaissance missile to the Chinese corporation Norinco in 2014–2015, with additional materials in 2022. In 2025, China unveiled an improved drone launched from the SR-5 rocket system. It is believed that the technologies provided by Russia accelerated its development.
– Chinese and Russian companies also coordinate the production and supply of dual-use goods necessary for the Russian military-industrial complex. China has become one of the key suppliers of such goods to Russia and a channel for access to Western technologies restricted by sanctions.
– Additionally, Chinese military experts have explored ways to counter the Starlink satellite system, including through cyberattacks and satellite destruction.
– However, the cooperation has limitations: Beijing aims to maintain access to Western markets and technologies and is guided by its own military-industrial interests. Trust issues persist between the countries — in 2019, “Rostec” accused China of over 500 instances of copying Russian military developments over the previous 17 years.
7. The EU considers lifting sanctions against a Chinese fabric manufacturer accused of aiding Russia.
– The EU may lift sanctions against the Chinese company Yusha Group, accused of supplying European technologies to Russian buyers connected with the military industry.
– Yusha Group was sanctioned by the EU in February 2025. The company from Hubei province was accused of supplying Irish-made antennas to the Russian company “Quasar,” which is under US sanctions for its role in the war against Ukraine.
– During negotiations with the EU, Beijing promised that Yusha Group would cease supplying prohibited goods to buyers connected with the Russian military. In return, China agreed to exclude the German company Sindlhauser Materials from its export control list. Its products are needed by the Dutch ASML — one of the key manufacturers of semiconductor equipment.
– If the EU agrees to lift the restrictions, Yusha Group will again be able to trade freely on the European market. Earlier, in June, the EU had already suspended sanction restrictions against the Chinese microchip manufacturer Yangzhou Yangjie Electronics to fulfill existing orders from European car manufacturers.
8. The US extended the deadline for negotiations on the sale of Lukoil’s foreign assets to November 21.
– The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has extended until November 21, 2026, the period during which potential buyers can negotiate the purchase of foreign assets of the Russian oil company “Lukoil.”
– The decision was made after the American investment group Carlyle withdrew its offer in early October. The portfolio of assets is valued at approximately $22 billion.
– Previously, at least ten companies, including Exxon Mobil, as well as businessman Bernd Bergmair, had shown interest in purchasing. Carlyle, which initially agreed to the deal on January 29, was negotiating to bring in partners, including the Mubadala, XRG, and IHC funds and the U.S. International Development Finance Corporation.
– The U.S. imposed sanctions against “Lukoil” and “Rosneft” in October 2025 to limit Russia’s revenues, which help finance the war against Ukraine. “Lukoil’s” foreign assets have been up for sale since last year.
