After recent Ukrainian strikes on Russian refineries and port infrastructure, about 20% of Russia’s fuel export capacity is unavailable. Reuters reports this, citing sources.
At the end of March, this figure stood at about 40%. According to the agency’s sources, Russia’s infrastructure is now overloaded with oil, while storage facilities are filling up rapidly. This means that some oil fields will have to reduce oil production.
According to Reuters, Transneft has already said it cannot accept the full volumes of fuel from producers that had planned to ship it through the Baltic port of Ust-Luga, which came under attack. Transneft accounts for 80% of all exports of this resource from Russia.
A reduction in oil production in Russia, the world’s second-largest exporter, will worsen tensions in global markets, which are already being shaken by supply disruptions caused by the war in the Middle East, journalists note.
As Novaya-Europe previously wrote, Russian oil is taxed not according to export volumes but “at the well,” during production. Therefore, if oil companies are forced to reduce raw material output, the federal budget will begin losing money.