Ust-Luga Port Resumes Oil Exports After Drone Attacks
Ust-Luga resumed oil loadings Monday after a drone alert was lifted. Primorsk remains shut following strikes that set fuel reservoirs ablaze on Sunday.
Russia has partially restored operations at its major Baltic Sea energy hubs following a series of aerial strikes. While the port of Ust-Luga resumed oil loadings on Monday after a drone attack alert was lifted, the neighboring facility at Primorsk remains closed. Both locations, which serve as the nation's primary petroleum export outlets, had suspended activities on Sunday following drone attacks.
The suspension of activities at these key ports adds to the volatility of the global energy market, which is already facing shortages due to the closure of the Strait of Hormuz by Iran amid the conflict involving the United States and Israel. These geopolitical disruptions have placed significant upward pressure on the price of Brent Crude Oil as supply chains are rerouted or halted.
Local authorities confirmed the severity of the strikes in the Leningrad region. Alexander Drozdenko, the regional governor, noted that several fuel reservoirs in Primorsk were set ablaze following the drone incursions. While he did not explicitly confirm the export suspension, industry sources indicate that the facility, which handles over 1 million barrels of crude per day, is currently offline. It remains unclear if the port of Ust-Luga sustained any direct damage during the alert.
Ukraine has intensified its campaign against Russian energy infrastructure in an effort to undermine the Kremlin's economic resources. Military officials in Kyiv confirmed strikes against the Primorsk terminal and an oil refinery in Ufa. This follows similar recent disruptions at the Black Sea port of Novorossiysk.
Transneft, the state-owned pipeline monopoly responsible for both ports, has not yet issued a formal statement regarding the timeline for a full return to service at Primorsk. The facility is a critical node for the export of flagship Urals crude and high-quality diesel, while Ust-Luga typically handles approximately 700,000 barrels per day. Last year, Ust-Luga exported nearly 33 million metric tons of oil products, highlighting its significance to the regional economy.
