Reuters: Russiaʼs “Transneft” warns oil companies of possible supply cuts due to drone attacks

Author:
Olha Bereziuk
Date:

Russiaʼs oil transportation monopoly “Transneft” has warned producers that they may have to cut production after Ukrainian drone attacks on critical export ports and refineries.

This was reported to Reuters by three industry sources.

According to Ukrainian military and Russian industry sources, Ukrainian drones attacked at least 10 oil refineries, reducing Russia’s refining capacity by almost a fifth, and damaged the main Baltic ports of Ust-Luga and Primorsk. Russian authorities have not publicly commented on the extent of the damage or its impact on production and exports.

However, “Transneft”, which transports more than 80% of all oil produced in Russia, has in recent days restricted the ability of oil companies to store oil in its pipeline system, two sources close to Russian oil companies said.

“Transneft” also warned producers that it could accept fewer oil volumes if its infrastructure suffers further damage, two sources said. The attacks could force Russia, which supplies 9% of the worldʼs oil, to eventually cut production.

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