Ukraine’s drone offensive forces Crimea to declare economic emergency as Baltic states push EU to ban Russian oil

Economic emergency in Crimea

Russian-appointed governor Sergey Aksyonov signed decrees on Friday declaring a regional-level emergency in Crimea and Sevastopol, citing the need for rapid decision-making to stabilise essential sectors. The move follows weeks of Ukrainian drone strikes that have crippled logistics and energy facilities across the peninsula, leaving filling stations without petrol for private motorists and forcing the suspension of tourism and children’s summer camps until September. Fuel shortages, described by Aksyonov as the “most difficult” situation, have been exacerbated by damage to the Kerch Bridge, through which Moscow had previously routed fuel and cargo.

I cannot say exactly how long it will take, nor can I publicly disclose the specific action plan. However, we are taking action.

Sevastopol governor Mikhail Razvozhayev said emergency crews had eased power cuts by Friday, but urged residents to avoid overloading the network. Public transport, shops and street lights had earlier been restricted. Razvozhayev confirmed that areas still without power were being connected to reserve sources.

Do not turn on all powerful appliances at once. You should increase the load on the network gradually so the system can stabilise.

Energy infrastructure under fire

Ukraine has intensified attacks on Russian energy assets in recent months, targeting oil refineries and gas processing plants hundreds of kilometres from the frontline. The campaign has disrupted fuel production and distribution across Russia, with industry sources reporting halts at several major facilities (

1. May 25, 2026Ukrainian forces attack Yaroslavl oil refinery, about 700 km from the border, according to President Zelenskiy.
2. Jun 10, 2026Rosneft’s Kuibyshev oil refinery halts processing after a drone strike.
3. Jun 12, 2026Tatneft’s TANECO refinery, one of Russia’s most advanced, halts operations after a drone attack.
4. Jun 16, 2026Moscow oil refinery halts operations following a Ukrainian drone attack.
5. Jun 18, 2026Another attack damages processing units and sparks multiple fires at the Moscow refinery.
6. Jun 24, 2026NORSI, Russia’s fourth-largest refinery, suspends operations after a drone strike. Orenburg gas processing plant also struck.
7. Jun 26, 2026Ukrainian drones hit the main substation at Sevastopol power plant; attacks reported on two refineries in Ufa and an oil depot in Krasnodar.

). On 24 June, NORSI, Russia’s fourth-largest refinery and second-largest gasoline producer (capacity 320,000 barrels per day), suspended operations after a drone strike. The Orenburg gas processing plant, with annual capacity of 45 billion cubic metres, was also hit the same day. Earlier attacks halted refining at Kuibyshev, TANECO, Moscow, and Yaroslavl facilities, while on 26 June Ukrainian forces struck two refineries in Ufa, about 1,500 km from the front, and an oil depot in Krasnodar.

Ukrainian defence minister Mykhailo Fedorov said last week that forces were “isolating Crimea with drones,” adding, “It looks like in the nearest time, Crimea will become an island.” President Volodymyr Zelenskiy confirmed the operational tempo, ordering a 40-day offensive to pressure Russia toward negotiations.

Russia must now take that step toward peace.

Civilian toll

Russian strikes continued on the opposite bank of the Dnipro River. A drone hit a minibus in Nikopol, Dnipropetrovsk region, on Friday, killing two passengers and wounding 12 others, including two children, according to governor Oleksandr Hanzha. Neighbouring Zaporizhzhia city was also shelled throughout the day, though no casualties were reported there. Moscow claimed to have shot down 660 Ukrainian drones overnight, one of the highest single-day tallies since 2022.

EU urged to accelerate Russian oil ban

Baltic states Estonia, Latvia and Lithuania used a meeting of EU energy ministers on Friday to call for bringing forward a long-delayed proposal to ban Russian oil imports. The plan was originally set for April 2025 but was shelved after the Iran war closed the Strait of Hormuz, raising fears of an energy supply crisis. With the strait gradually reopening following a ceasefire extension, Baltic officials argued that Russian energy exports are still funding the Kremlin’s war. Poland’s deputy energy minister Wojciech Wrochna told the FT that Warsaw wanted a ban before the end of the year, though he acknowledged concerns about price and supply security. Energy commissioner Dan Jørgensen did not address the comments in the closed-door session, but the Commission has previously committed to the proposal.

Kyiv market opening

Separately, Ukraine’s largest mobile operator Kyivstar signed a memorandum of understanding with the national securities regulator to explore letting domestic investors trade its Nasdaq-listed shares through local brokers. CEO Oleksandr Komarov said the structure would allow a limited number of existing shares to trade in Ukraine, giving citizens a rare workaround for wartime capital controls. A full local listing, he added, would be considered only after the war.