Russia May Cut Oil Production Amid Rising Ukrainian Drone Attacks on Critical Infrastructure
In recent months, Russia’s energy sector has faced increasing challenges due to a series of drone attacks carried out by Ukraine against vital oil facilities.
Transneft, the dominant state-owned pipeline company, issued a warning to oil producers indicating that oil extraction volumes could be reduced if the security situation further deteriorates.
This warning follows a surge in Ukrainian drone strikes targeting key ports and refineries that are crucial for Russia’s export capabilities.Since August, Kyiv has intensified its operations against Russian energy assets, aiming to weaken Moscow’s military efforts and curb Kremlin’s revenues, as diplomatic attempts to resolve the conflict have reached an impasse.
Experts highlight that these attacks significantly impact Russia’s economy since nearly a third of the federal budget depends on oil and gas export revenues.Ukrainian drones have targeted at least ten refineries and damaged major ports in the Baltic Sea, which serve as strategic hubs for Russia’s oil exports.
Recently, Transneft imposed restrictions on storage capacities within its pipeline system, complicating operations for oil companies.
Continued infrastructure damage could force Russia, responsible for about 9% of global oil production, to reduce its overall output, affecting global markets.The Primorsk port, one of Russia’s most vital oil export terminals, was temporarily shut down for several days following drone attacks.
Daily, around 970,000 barrels of Urals crude were exported from this port before the attacks.
Additionally, attacks targeted one of Russia’s largest refineries, Kirishinefteorgsyntes, which processes over 20 million tons of oil annually.These developments signal an escalating destabilization of Russia’s energy sector, with possible repercussions on global oil prices and supply chains, underscoring how Ukraine’s military actions continue to influence world energy markets.