As a result of numerous strikes by the Armed Forces of Ukraine on port infrastructure, pipelines, and oil refineries, the Russian Federation is forced to reduce oil production. According to industry sources, the country’s export capabilities have decreased by 20%.
This is reported by Finway
Impact of Attacks on the Russian Energy Sector
Russia, which is the second-largest oil exporter in the world and the third-largest producer after the USA and Saudi Arabia, is currently facing significant logistical challenges. This is occurring against the backdrop of an already unstable situation in the global oil market due to tensions in the Middle East. Increased supply disruptions could further intensify pressure on global energy markets.
Scale of Ukrainian Attacks
Over the past month, Ukraine has carried out large-scale drone attacks on key oil export facilities in Russia. In particular, the Baltic ports of Ust-Luga and Primorsk have been targeted. This is part of a strategy to diminish the economic potential of the Russian Federation.
“At least 20% of Russia’s total export capacity is not operational, down from a peak of 40% in March, but it is still enough, according to three industry sources, to impact oil production in Russia, which is the third-largest producer in the world after the USA and Saudi Arabia.”
Even though export capacities are recovering from peak disruptions in March, restrictions remain significant. This could lead to further reductions in oil production in Russia and affect global supplies of the commodity.