Kathrine Frich
Oil exports remain a cornerstone of Russia’s economy.
It generates a significant share of state revenue and funding key government spending.
Income from energy sales has long been a crucial pillar supporting the country’s financial stability.
Because of this reliance, any disruption to oil flows or export infrastructure can have immediate and far-reaching consequences, both for the domestic economy and for global energy markets.
Ports under attack
Ukrainian drone strikes have hit major Russian oil terminals along the Baltic Sea, significantly disrupting exports, according Financial Times analysis cited by Digi24.
The attacks focused on Ust-Luga and Primorsk, two key ports near Estonia that together handle more than 40% of Russia’s seaborne oil shipments.
Five separate strikes in late March are estimated to have cost Russian exporters around $970 million in lost revenue in the week ending March 29.
Heavy financial losses
Primorsk alone reportedly saw roughly $200 million worth of oil destroyed during the attacks.
The losses come at a time when Russia has been benefiting from rising global oil prices, with Brent crude trading above $100 per barrel due to tensions in the Middle East.
The disruption has undercut Moscow’s ability to capitalize on these higher prices.
Export slump
The impact has been particularly severe at Ust-Luga, a major hub that accounts for about 8% of global naphtha supply.
Following the strikes, fuel exports dropped by around 70% in the final week of March, according to the Financial Times.
Satellite imagery showed fires and damage to storage facilities, while local officials described conditions at the sites as still “difficult.”
Struggling defenses
Despite deploying layered defense systems, including electronic countermeasures and physical barriers, Russia has struggled to stop the latest wave of Ukrainian drone attacks.
Companies operating in the sector have begun installing their own protective measures.
“We had to erect towers at all our factories and stretch nets between them,” a senior Russian businessman told the Financial Times. “We bought everything with our own money. Moscow gave us nothing.”
Sources: TVP World, Financial Times, WP.
