Russia’s oil pipeline monopoly Transneft has warned producers they may have to cut output following Ukraine’s drone attacks on critical export ports and refineries, Reuters has reported, citing industry sources. Ukrainian drones have frequently hit Russia’s oil plants, cutting refining capacity by up to a fifth, and damaged ports including Ust-Luga and Primorsk, Ukrainian military officials and Russian industry sources have said. Ukraine’s military said on Tuesday it had struck the Saratov oil refinery in Russia during an overnight attack.
Transneft, which handles more than 80% of all the oil extracted in Russia, has in recent days restricted oil firms’ ability to store oil in its pipeline system, two industry sources close to Russian oil firms told Reuters. Transneft has also warned producers it may have to accept less oil if its infrastructure sustains further damage, the two sources said. Transneft dismissed Reuters’ reporting as “fake news”. The Russian government relies heavily on oil and gas revenue. Volodymyr Zelenskyy, Ukraine’s president, has said attacks on Russian oil infrastructure are “the sanctions that work the fastest”.
The European Commission will propose speeding up the phase-out of Russian fossil fuel imports, the EU executive’s head, Ursula von der Leyen, said on Tuesday after a call with the US president, Donald Trump. “Russia’s war economy, sustained by revenues from fossil fuels, is financing the bloodshed in Ukraine,” she said. Von der Leyen announced the commission would soon present its 19th package of sanctions aimed at Russia’s war effort – targeting crypto, banks, and energy.