Russia's Borrowing Cost Jumps as Drone Strikes Cripple Refineries

Russia's 10-year bond yield hit 16.71% on July 6, 2026—340 basis points above its 52-week low—as investors demand higher compensation for holding Moscow's debt. Three major refineries sustained drone damage in three weeks; Moscow's largest fuel supplier is offline through year-end. Refineries fund the federal budget through oil and gas revenue. Higher yields raise the government's cost to borrow and can pressure the ruble if foreign investors exit.