The closure of Russia's Baltic port of Ust-Luga after a drone attack on Wednesday could force large oil refineries in the European part of the country to reduce oil processing due to transportation limitations, Reuters reported, citing two sources, writes UNN.
Details
According to sources and social media reports, the strike damaged a railway unloading trestle for petroleum products at the Ust-Luga terminal.
The export "bottleneck" in Ust-Luga jeopardizes oil refining at the four largest refineries in the European part of Russia - in Kirishi, Yaroslavl, Moscow, and Ryazan. Together, they process about 55 million metric tons of crude oil per year (400,000 barrels per day), according to traders.
On Wednesday, the Ust-Luga oil terminal stopped accepting railway cargo, including supplies from these four major refineries.
Processing expected to be cut in the coming days
Ust-Luga stopped accepting gasoline and fuel oil on Wednesday. "Within a few days, we will have to reduce processing to a minimum level, and then, perhaps, shut down the units," said an oil refining specialist.
All sources spoke on condition of anonymity as they were not authorized to comment publicly on the situation.
Ust-Luga, one of Russia's export hubs for petroleum products, handles about 18 million tons of fuel oil annually, according to traders' estimates.
Disruptions to fuel oil exports pose the biggest problems for refiners, sources note.
While gasoline and diesel can be sold domestically, demand for fuel oil within the country is limited, and it accounts for 18% to 35% of the oil processing volume at all affected plants.
At least 40% of Russia's oil export capacity halted - Reuters25.03.26, 20:10
Reducing processing to decrease fuel oil production will also limit gasoline production precisely during a period of seasonal demand growth.
Refiners are considering emergency measures.
"Fuel oil is a problematic product. We are calculating how to minimize its output, redirect it to bitumen, bunker fuel, and are also considering other ports, reducing processing, and maximizing the loading of secondary units," an industry source noted.
It is currently unknown when operations in Ust-Luga will resume.
Addition
Also on Wednesday, the Kirishi refinery was attacked by a drone and may reduce processing, which will partially alleviate the transshipment capacity deficit as less fuel oil will be produced.
Russia's Kirishinefteorgsintez refinery, one of the country's largest, halted operations on Thursday after Ukrainian drone attacks caused fires in parts of the facility, two industry sources said.
This shutdown could worsen Russia's oil supply situation, as about 40% of its export capacity had already been knocked out by drone attacks, tanker detentions, and the closure of the Druzhba pipeline in Ukraine.
Sources said that after a series of attacks, two main units, as well as some auxiliary ones, caught fire. One interlocutor noted that it is currently difficult to estimate the repair time for the damaged equipment.
None of the sources were named as they were not authorized to speak to the press.
Russian oil company Surgutneftegaz, which controls the plant, did not respond to a request for comment.