Russian oil terminals under attack unable to accept shipments for second week, sources say

Ukrainian drone strikes have crippled Russia's oil export terminals at Ust-Luga and Primorsk. Refineries are now seeking costlier rail routes to other ports like Vysotsk and Taman. This disruption, continuing for weeks, impacts diesel fuel exports...

Reuters
A satellite near-infrared image shows smoke rising from Russia's Baltic port of Ust-Luga after a Ukrainian attack, in Ust-Luga, Leningrad Oblast
Russia's Baltic oil export hubs at Ust-Luga and Primorsk remain unable to handle shipments after a series of Ukrainian drone attacks, prompting the country's refineries to find alternative routes for export, industry sources said on Friday.

The attacks have damaged port ‌infrastructure and ⁠continued through ⁠the last two weeks of March, with at least five ​strikes on Ust-Luga in the space of 10 days.

Sources said the export restrictions, along with disruptions at large refineries, could lead to a decrease in oil production in Russia.


Traders ​said refineries have been unable to ⁠deliver diesel ‌fuel to Primorsk for export since March ​22, leaving ​refineries in European Russia and Siberia without ⁠their most viable export route.

"Diesel fuel has ​not been accepted in Primorsk since Sunday (March ​22)," said one industry source. "They have promised to resume accepting delivers to the system."

Traders said refineries were having to consider more expensive rail transport routes to other export terminals.
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Refineries normally sending deliveries to Ust-Luga have for ‌the past week and half considered sending their shipments of fuel oil to Vysotsk, further north on the Gulf ⁠of Finland or to Taman on the Black Sea coast.

But traders say Vysotsk has a smaller handling capacity and shipping ​to Taman would require ensuring larger numbers of rail cars.

Finnish maritime officials told Reuters this week that shipments from Primorsk and Ust-Luga were sharply down to "individual vessels" instead of a weekly average of 40 to 50.
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