Ukrainian drone strikes on Russian export oil pipelines and the doubling of American tariffs on Indian goods are hitting Moscow's oil flows, writes Bloomberg. Russian oil shipments by sea last week fell to a four-week low (2.72 million barrels per day), caused by a decrease in loading volumes at the Baltic port of Ust-Luga. Tracking data and shipping reports show that last week only two tankers loaded Russian oil at Ust-Luga compared to four in the previous seven days and six in the week before August 10.
Shipments from this port were also likely affected by Ukrainian UAV strikes on the linear production-dispatch station (LPDS) "Unecha": this is where the pipeline system begins, through which oil is delivered to the port. "Unecha" suspended operations after Ukrainian drone attacks twice in the past two weeks, leading to a halt in oil supplies through the pipeline to Hungary.
Another reason for the reduction in Russian oil exports, the agency notes, is the decline in purchases by India over the past two months by more than 500,000 barrels per day. Even if it turns out that all tankers with unspecified destinations unload in India, the reduction would be 300,000 barrels per day, or 17% compared to late June figures.
For the week ending August 24, the gross value of Moscow's exports decreased by approximately $110 million, or 9%, to $1.11 billion compared to $1.22 billion the previous week. The decline in shipment volumes was exacerbated by a slight decrease in average prices for Russian oil. A barrel of Urals oil delivered from the Baltic fell by $0.3 to $54.88, and from the Black Sea by $0.1 to $55.43.
Amid the tariffs imposed by Donald Trump on Indian goods, which came into effect on Wednesday, including due to Russian oil exports. Major Indian refiners, including state-owned and private companies, have begun to reduce imports of Russian oil.
As Reuters writes, citing a source in the Russian government, the decline in oil sales revenue will force an increase in taxes.