Ukraine’s Response to Eased Oil Sanctions and Impact on Russian Energy
By Daniel Flynn and Olena Harmash
Ukraine’s Long-Range Strikes and International Sanctions
KYIV, March 26 (Reuters) – Ukraine is using long-range strikes on energy infrastructure to maintain pressure on Russia after international oil sanctions on Moscow were eased this month in the wake of the Iran war, President Volodymyr Zelenskiy said.
Washington issued a 30-day waiver this month for countries to buy sanctioned Russian oil and petroleum products stranded at sea in an effort to stabilise global energy markets roiled by the conflict in the Middle East.
Ukraine’s European allies, who want to maintain pressure on Russia to end its four-year-old war, have criticised the move by Washington.
Zelenskiy’s Statement on Sanctions and Ukrainian Actions
Asked about an escalation in recent days of Ukrainian attacks on Russian energy infrastructure, Zelenskiy noted the shift in international sanctions policy: “The pressure on Russia in the world is decreasing.”
“Therefore, unlike most countries in the world, Ukraine has its own sanctions: its long-range capabilities,” he told Reuters in an interview late on Wednesday.
Following heavy Russian drone and missile strikes on Ukrainian cities in recent days, Zelenskiy added that pressure on Moscow needed to be maintained: “If Ukraine does not respond to their attacks, Russia will simply continue the war and not even think about pauses.”
Disruption of Russian Oil Exports
Impact of Ukrainian Drone Attacks on Russian Ports
RUSSIAN EXPORTS DISRUPTED
On Wednesday, Russia’s Baltic ports of Ust-Luga and Primorsk suspended crude oil and oil products loadings, sources told Reuters, after Ukrainian drone attacks sparked blazes, with smoke visible from Finland.
Primorsk resumed oil and fuel loadings on Thursday, though at lower capacity than normal because of damage to its infrastructure, three sources said.
Details of Ukrainian Operations and Market Impact
Ukraine’s SBU security service said in a statement on Wednesday that its long-range drones had flown over 900 km (560 miles) from its Alpha Special Operations Center to strike the Ust-Luga terminal.
Reuters calculations based on market data showed on Wednesday that at least 40% of Russia’s oil export capacity had been halted as a result of the Ukrainian drone attacks, a disputed attack on a major pipeline and the seizure of tankers.
The shutdown is the most severe oil supply disruption in the modern history of Russia, the world’s second-largest oil exporter. It has hit Moscow just as oil prices exceeded $100 a barrel due to the Iran war.
Russian Response to Infrastructure Damage
Russia’s oil pipeline monopoly Transneft will try to redirect oil exports from the Baltic Sea ports damaged by drone attacks, Interfax news agency reported on Thursday.
(Reporting by Daniel Flynn and Olena Harmash; Editing by Andrei Khalip)