Ukrainian strikes forcing Russia to cut oil production – Reuters

Artur Kryzhnyi - 2 April, 20:32

Stock photo: Getty Images

A reduction in Russia's oil production is inevitable given that Ukrainian strikes on port infrastructure, pipelines and oil refineries have reduced export capacity by 20%.

Source: Reuters, citing sources

Details: Production cuts in Russia, the world's second largest oil exporter, will increase pressure on global supplies at a time when oil markets have already been shaken by unprecedented disruptions due to the conflict in the Middle East.

Over the past month, Ukraine has intensified attacks on Russian oil export infrastructure. In the most massive drone strikes in more than four years of war, Ukraine attacked the Baltic ports of Ust-Luga and Primorsk in an effort to weaken the Russian economy.

At least 20% of Russia's total export capacity is not operational – lower than the peak of 40% in March but still sufficient, according to three industry sources, to affect oil production in Russia, the world's third largest producer after the US and Saudi Arabia.

Background:

In March, Russia's Leningrad Oblast reported a large-scale drone attack, damage to a fuel tank and a fire at the port of Primorsk.
It later emerged that the Baltic ports of Primorsk and Ust-Luga, Russia's largest oil export hubs, had suspended crude oil and fuel exports following the drone attacks.
Ukraine's defence forces struck the oil terminal at the port of Primorsk, as well as the Bashneft-Ufaneftekhim oil refinery in Ufa. Fires broke out at both facilities.
The Baltic port of Primorsk, one of Russia's largest export hubs, lost at least 40% of its storage capacity as a result of Ukrainian drone attacks last month.

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