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Strikes Leave Russia’s Baltic Oil Hubs Largely Offline, Forcing Export Reroutes

Reduced capacity raises the risk of near-term output cuts, according to industry sources.

Overview

  • Russia’s Ust-Luga and Primorsk oil ports remain largely unable to load cargoes after Ukrainian drone attacks in March.
  • Refineries are diverting fuel by rail to smaller ports such as Vysotsk or to Taman on the Black Sea, which adds cost and strains limited capacity.
  • Satellite images from Vantor show Primorsk lost at least 40% of its storage after fires damaged eight large tanks.
  • Imagery also indicates Ust-Luga lost about a quarter of its petroleum-product tank storage and suffered damage to some piers.
  • Industry sources report export capacity is down by about 1 million barrels per day, clogging the Transneft pipeline system and likely forcing production cuts that could reduce Russia’s oil revenue.