Russia's Borrowing Costs Surge as Refinery Damage Hits Revenue

Russia's 10-year bonds now yield 16.71%, up 340 basis points in a year, as investors demand more return for holding the debt. Three major refineries were hit by drones in three weeks; the largest fuel supplier is offline through year-end. Since oil and gas revenue funds the budget, higher borrowing costs may pressure the ruble if foreign investors pull money out.