Russia threatens oil output cuts after Ukraine strikes infrastructure
FILE PHOTO: A drone view of a pump jack and drilling rig south of Midland, Texas, U.S. June 11, 2025. REUTERS/Eli Hartman/File Photo
Russia is facing a decline in oil production, as Ukrainian attacks on ports, pipelines, and refineries have significantly reduced the Kremlin’s export capabilities.
Reuters reported the development.
Yes, the “inevitable” reduction in production will increase the strain on global supplies, which are already facing difficulties due to the conflict in the Middle East.
Sources report that Russian export capacity has already decreased by one-fifth, significantly impacting Russian oil production.
Over the past month, Ukraine has stepped up attacks on infrastructure related to the export of raw materials. To weaken the Russian economy, the Defense Forces have struck at Baltic ports. In particular, after the attacks, one of them, Ust-Luga, stopped oil exports.
Despite these developments, as noted, Russia’s pipeline system is overflowing with oil, and storage facilities are filling up. These developments will prompt Russia to reduce its production of raw materials.
In addition to ports, the Kremlin can use pipelines. However, sources say that Transneft cannot load oil according to the original schedule due to the accident. One source said Transneft couldn’t take all the oil planned for export through Ust-Luga.
Reuters emphasizes that although Russia has benefited from rising oil prices, cutting production will still hurt the Kremlin’s budget.
On the night of Tuesday, March 31, drones once again attacked the Russian port of Ust-Luga. The Leningrad region has recorded drone activity for the seventh consecutive day.
As is known, the Russian company Novatek suspended gas condensate processing and oil exports from the port of Ust-Luga after a UAV attack on March 25. A fire broke out at the facility, and the timing of its resumption remains unknown.
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