Russia’s Oil Port Ust-Luga Damaged in New Drone Attack

Article content

(Bloomberg) — Ust-Luga, Russia’s key oil export port on the Baltic coast, sustained further damage following an overnight drone attack as Ukraine has intensified strikes on Russian energy infrastructure.

Article content

Drones targeted the port area early Tuesday morning, regional governor Alexander Drozdenko said in a Telegram post. He did not provide details on the extent of the damage to the facility, which handles crude and oil products as well as chemicals, fertilizers and general cargo.

Article content

Article content

Article content

Ukraine has stepped up attacks on Russian infrastructure along the Baltic coast in the past few days, in an apparent effort to curb the Kremlin’s export revenue. President Volodymyr Zelenskiy said Monday that some of Kyiv’s international partners have urged Ukraine to scale back the strikes, though he did not name them.

Article content

Article content

Read: Russia’s Key Baltic Oil Ports on Fire Again, Images Show

Article content

Russia has profited from soaring oil prices partly due to disruptions linked to the war in Iran, which have heightened concerns over global crude supply. That has pushed the price of Urals — Russia’s main export blend — to its highest level in nearly four years. A US waiver allowing a broad range of countries to purchase seaborne Russian crude has also boosted demand.

Article content

However, Ukraine’s attacks are beginning to erode those gains. Strikes have forced Ust-Luga and Primorsk — which together handle about 40% of Russia’s seaborne crude exports — to reduce loadings.

Article content

The attacks have also led to stray drones crashing in several Baltic neighboring nations. 

Article content

Petrochemical Plant Fire

Article content

Separately, Russian authorities reported a fire at the petrochemical plant Nizhnekamskneftehim in the region of Tatarstan. The fire is now being contained, Radmir Belyaev, the mayor of Nizhnekamsk, said in a social media statement.

Article content

Russia’s Sibur, which owns the petrochemical facility, confirmed the incident in an emailed response to Bloomberg. “Based on a preliminary assessment, the reason for the incident is an equipment malfunction,” Sibur’s press office said. 

Article content

Earlier today, operations at the city’s airport were paused amid drone alerts. 

Article content

Nizhnekamskheftehim is one of the world’s top 10 producers of synthetic rubber, according to its website.

Article content

(Updates with information on fire at a major petrochemical plant in Russia.)

Article content