Russia's Borrowing Costs Spike as Drone Strikes Damage Oil Refineries

Russia's borrowing costs jumped sharply in July 2026: investors now demand 16.71% annual interest to lend Moscow money, up significantly from earlier in the year. The spike follows drone strikes that knocked three major refineries offline. Since oil sales fund Russia's government budget, damaged refineries mean less revenue and higher borrowing costs—making it more expensive for Moscow to finance itself.