Strikes on key ports and refineries thwart the Kremlin’s attempts to capitalize on the jump in world oil prices.
Ukrainian drone strikes disabled up to 40% of Russia’s oil export capacity, Fortune reports, citing estimates from Reuters and Bloomberg, the PromPolitInform portal informs.
Despite a sharp increase in world oil prices due to the US war against Iran and the closure of the Strait of Hormuz, Russia could not take full advantage of the situation due to attacks on key export hubs.
The publication notes that Ukrainian drones attacked Novorossiysk, Primorsk and Ust-Luga – the main points of sea exports of Russian oil. According to Reuters, this led to a shutdown of about 40% of export capacities, which was the largest disruption in supply in the recent history of the Russian Federation.
According to Bloomberg, only through Primorsk and Ust-Luga previously passed about 45% of the sea oil exports of Russia.
Fortune notes that the strikes continue: new attacks on March 29 caused even more fires in the port of Ust-Luga.
Against the background of rising oil prices, this creates a contradictory situation for the Kremlin. On the one hand, the rise in price of Urals was partially supported by budget revenues, which had previously fallen by almost 50%. On the other hand, strikes on infrastructure limit physical exports.
“The jump in oil prices has made Russia one of the “biggest winners in the near term,” but the attacks of Ukraine actually negate this effect,” the newspaper notes.
Separately, it is emphasized that due to fuel shortages within the country, Moscow is preparing to re-impose a ban on gasoline exports in order to restrain domestic prices and avoid a shortage in the market.
According to Fortune, it is strikes on refineries and ports that are forcing the Kremlin to transfer resources from exports to protect domestic consumers amid rising inflation.
Meanwhile, Russian oil companies may declare force majeure after Ukrainian attacks on Baltic ports.
Photo – Dnipro Osint, fire in the port of Ust-Luga
