Russian oil companies have reportedly warned buyers that they may declare force majeure on supplies from Baltic Sea ports. The reason is ongoing Ukrainian strikes on Russia’s energy infrastructure.
Details
Reuters, citing sources in the oil industry, reports that Russia has issued the warning. According to the outlet, President Volodymyr Zelenskyy said Kyiv is using long-range strikes against Russia to maintain pressure on Moscow. Ukraine has intensified these actions after international oil sanctions on Russia were eased due to major supply disruptions. These disruptions followed the war involving the United States and Israel against Iran.
On Friday, March 27, Ukrainian drones attacked the Russian port of Ust-Luga. A fire was already burning there after a previous strike on Wednesday, March 25. Since then, oil loading at the port has been suspended. The port authorities have not announced when exports will resume. According to one source, shipments from the Ust-Luga terminal are unlikely to restart before mid-April.
Ukraine also hot another major Russian Baltic port, Primorsk. However, on Thursday, March 26, oil and fuel loading there partially resumed.
State of Russia’s Oil Sector
Alexander Drozdenko, governor of Russia’s northwestern Leningrad region where both ports are located, commented on the attacks on social media. He said the region has faced “unprecedented” drone strikes since March 22.
According to Reuters calculations based on market data, at least 40% of Russia’s oil export capacity has been disrupted. The causes include Ukrainian drone strikes, a suspected attack on a major pipeline, and tanker seizures. This marks the most serious disruption to Russia’s oil sector in its modern history. Russia is the world’s second-largest oil exporter.
“About 40% of Russia’s crude oil export capabilities – or around 2 million barrels per day, were shut as of Wednesday after the most recent attack. That includes Primorsk and Ust-Luga as well as the Druzhba pipeline, which runs through Ukraine to Hungary and Slovakia,” Reuters reported.
Ukraine says the goal of these strikes is to reduce Moscow’s oil and gas revenues, which account for about a quarter of Russia’s state budget. This, in turn, is to weaken the country’s military capabilities. Russia, meanwhile, describes the Ukrainian strikes as terrorist attacks and has stepped up security measures.
Earlier, The Ukrainian Review reported that Ukrainian forces struck the Yaroslavsky oil refinery and the Promsintez explosives plant in Russia.
