Sanctions and drones have broken the Kremlin’s energy system: Russian fuel exports have fallen to a minimum

Russia is rapidly losing ground in the energy market, with refined fuel exports falling to their lowest level since the start of the full-scale war. Western sanctions, Ukrainian drone strikes on oil ports, and technical shutdowns of plants have hit the Kremlin’s main source of income.

According to Bloomberg, seaborne shipments of Russian oil products fell to less than two million barrels per day in the first weeks of October, a record low in the past three years. The most noticeable decline was recorded in Baltic ports, especially after the attacks on the energy hub in Ust-Luga.

The publication’s sources explain that the drop in exports is a result of the simultaneous pressure of several factors: sanctions against Rosneft and Lukoil, restrictions on financing maritime transportation and difficulties with ship insurance. In addition, weather conditions in the Baltic Sea have further slowed down logistics.

“Moscow is trying to retain its energy revenues, but the sanctions trap is gradually closing,” analysts note.

Despite a slight increase in diesel fuel supplies, overall exports are falling due to reduced sales of crude oil and fuel oil. Turkey and African countries remain the main buyers, but even there Russian cargoes are arriving with delays.

At the same time, flights to Asian markets are becoming increasingly risky – long routes increase costs, and some tankers may fall under new sanctions restrictions as early as November.

Traders note that after Russia stopped publishing official production data, seaborne shipments remain the only indicator of the real state of the oil industry. And this indicator is now showing a clear decline.

According to analysts, although diesel and gas oil volumes have increased slightly — by about 2% to 740,000 barrels per day — this is not enough to offset the overall decline in the oil sector.

Recall, it was previously reported that the price of Russian oil fell sharply after Chinese refineries began to refuse purchases due to fears of secondary US sanctions.

As a reminder, the fuel crisis continues in Eastern Siberia and the Far East of Russia – the Irkutsk Region, Buryatia, and Transbaikal Territory have been added to the list of regions where gasoline shortages have occurred.

As reported, imports of diesel and aviation fuel into EU countries are increasing to record levels in October, as traders prepare for the winter season and expected restrictions on petroleum products produced from Russian raw materials.

Also follow “Pryamim” on Facebook , Twitter , Telegram , and Instagram.