Transneft has told producers they may have to cut their output because of attacks on pipelines and ports, Reuters says. What we know on day 1,302
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”.
