Russia halts oil exports through Primorsk and Ust-Luga following drone attacks

According to industry sources, both ports suspended shipments of crude oil and petroleum products as early as Sunday, March 22, following the drone strikes.

Governor of the Leningrad region, Alexander Drozdenko, said that several fuel storage tanks caught fire in Primorsk as a result of the attacks. At the same time, he did not specify whether the strikes affected the port’s operations. There has been no information about damage in Ust-Luga.

The company Transneft, which operates both ports, has not commented on the situation.

The report noted that Primorsk is one of Russia’s main export hubs and can handle more than 1 million barrels of oil per day.

Ust-Luga processes about 700,000 barrels per day. Last year, 32.9 million tons of petroleum products were exported through Ust-Luga, while 16.8 million tons were shipped via Primorsk.

At present, oil exports through the port of Ust-Luga have resumed after a warning about new attacks was lifted, while Primorsk remains closed.

Easing of US sanctions on Russian oil

In February, Russia’s revenues from oil exports fell to their lowest level since the start of the full-scale invasion of Ukraine.

However, on March 13, the United States Department of the Treasury adopted a temporary decision to ease restrictions on Russian oil and petroleum products.

Under this decision, third countries may purchase Russian oil, but only shipments that were loaded onto tankers before March 12 and are already at sea. The authorization will remain in effect for one month and covers around 124 million barrels.

In diplomatic circles, the move has been criticized. It is unlikely to significantly stabilize the global market, but it could allow Russia to obtain additional resources to continue the war.

President of Ukraine Volodymyr Zelenskyy stated that the Kremlin could earn up to 10 billion dollars, which would be used to finance military operations.