Russia’s main Black Sea oil port of Novorossiysk was on fire again after a second Ukrainian drone strike in just a few days, in a fresh blow to Moscow’s vital energy exports and war finances.
Novorossiysk is one of Russia’s most important oil export hubs and a key lifeline for the country’s economy and military budget.
It handles crude oil shipped by sea to Europe, Asia, and other global markets and is a key link for pipelines carrying oil from inside Russia and from Kazakhstan.
Any disruption there quickly affects Russia’s ability to sell oil abroad.
This latest strike came only days after another drone attack hit the same port area on March 2, making it the second such incident in a short time.
Ukraine’s Energy Campaign
Ukraine has not officially claimed responsibility for the latest attack.
However, Ukrainian officials have repeatedly stated that Russian oil infrastructure is a legitimate target because energy exports help finance Moscow’s military operations in Ukraine.
The fire is believed to have started near the Sheskharis oil terminal, which is operated by Russia’s state pipeline company Transneft.
The terminal is among the biggest oil loading facilities on the Black Sea and can process hundreds of thousands of barrels of crude oil daily under normal conditions.
Russia’s oil income remains critical to its war effort in Ukraine, even as revenues fluctuate under sanctions and repeated attacks on energy infrastructure.
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Oil and gas sales still make up roughly a quarter of the Russian government’s budget, aiding Moscow in funding military operations, weapons manufacturing, and troop support.
In 2025, Russia earned about 8.5 trillion rubles from oil and gas, the lowest level in five years.
The drop was caused by lower global oil prices, sanctions, and heavy discounts forced on Russian crude sold to Asia.
Despite the decline, energy exports continued to bring in more than $100 billion (Ksh13 million) over the year, keeping the budget afloat amid record military spending.
The pressure intensified in early 2026 as Ukraine stepped up drone attacks on refineries, pipelines, and ports.
In January, oil and gas income fell to its weakest monthly level since the COVID‑19 crash.
In March, revenues dropped again by more than 40 percent compared to the same period last year, according to Russian Finance Ministry data.
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These losses came just as Moscow was increasing defense outlays on the battlefield.
Middle East War Boosts Russia’s Oil Cash
Russia is quietly gaining from the war in the Middle East, mainly through higher oil prices and renewed demand for its crude, even as the conflict in Ukraine drags on.
Before the fighting in the Middle East began, Russia’s oil income was under heavy pressure.
Oil and gas revenues fell by 24 percent in 2025 to about $108 billion (Ksh14 trillion), the lowest level in five years.
In early 2026, the situation worsened.
In January and February, Russia’s oil and gas tax income dropped to levels last seen during the COVID‑19 oil crash, as Russian crude traded below $45 (Ksh5,850) a barrel and buyers demanded deep discounts.
The war in the Middle East has quickly changed that picture.
By mid‑March, Russian Urals crude sold to Asian buyers was trading above $80 (Ksh10,400) a barrel, at times rising much further as Gulf exports were threatened.
Russia doesn’t depend on key chokepoints like the Strait of Hormuz, making its oil more appealing during regional instability.
As a result, Russia has earned billions of extra dollars from oil sales within weeks.
Economic analysts estimate that Moscow earned about €6 billion (Ksh900 billion) from fossil fuel exports in the first two weeks of the Middle East conflict alone, most of it from oil.
