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Russia in oil problems for Ukrainian attacks by drones

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Russia in oil problems for Ukrainian attacks by drones
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The Russian oil monopolist transneft warned the manufacturers to be forced to reduce production after Ukrainian drones hit key export ports and refineries, said three sources from the industry on Tuesday.

Kiev has strengthened the attacks on Russian energy infrastructure from August to weaken Russian war effort in Ukraine and reduce the revenues of the Kremlin, after peace talks set fire to the dead end.

Oil and gas revenues make between a third and half of the Total Federal Budget of Russia in the last decade, which makes the energy industry a key source of the funding of the Russian government.

According to Ukrainian military officials and Russian industrial sources, Ukrainian drones have hit at least ten refineries – reducing Russia’s refinery capacities for almost a fifth at one time – and damaged the Luke on the Baltic Sea, Ust-Lug and Primorsk.

Russian authorities did not comment on the proportion of damage or its impact on production and exports.

However, Transneft – which manages more than 80 percent of the total Russian oil – in the last days limited the possibility of oil storage within its pipeline system, two sources close to Russian petroleum companies for Reuters.

He also warned the manufacturers in order to refuse to receive additional oil if his infrastructure suffers additional damage, the sources added.

According to the source, these attacks could force Russia – which consists of 9 percent of world oil production – to reduce production.

The West has introduced a series of sanctions by Russia due to invasion of Ukraine, with a special focus on the energy sector. However, Moscow managed to redirect most of its oil exports to Asia, with India and China the main customers.

Last week, Ukrainian drons hit the largest Russian Port of Primorsk, for the first time since the beginning of the war in 2022. year, which temporarily stopped the work of the terminal.

Primorsk has a capacity for export more than 1 million barrels of oil per day, which is more than 10 percent of the total Russian production.

President Ukraine Volodimir Green said that attacks caused significant damage and described the strikes on Russian oil infrastructure as “sanctions that act fastest”.

(Vijesti.ba)


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