Russian crude oil exports decreased due to Ukrainian drone attacks and President Trump's tariffs – Bloomberg

Ukraine has intensified attacks targeting Russian oil infrastructure, hitting a main pumping station on the country’s export pipeline network and several oil refineries. This significantly impacts Russian oil exports to its main economic partners, including China and India, Bloomberg reports, writes UNN.

DetailsThe Unecha pumping station, located on the “Druzhba” pipeline system near Russia’s border with Belarus, has been targeted twice by Ukrainian drones over the past two weeks. The attacks halted crude oil supplies via pipelines to Hungary and Slovakia and appear to have hampered supplies from the port of Ust-Luga on Russia’s Baltic coast. The Baltic Pipeline System 2, which transports Russian and Kazakh crude oil to the port, originates in Unecha.

The presence of storage tanks at the port means that any halt in supplies may not lead to an immediate drop in deliveries, but only two tankers loaded Russian crude oil in Ust-Luga last week, compared to four in the previous seven days and six in the week before August 10, according to tracking data and shipping reports.

Recent strikes on the Volgograd and Novoshakhtinsk oil refineries contributed to a reduction in crude oil processing in Russia by approximately 700,000 barrels per day in the third week of August compared to the average of the last week of July. This should free up more crude oil for export if processing is halted for an extended period.

Separately, President Donald Trump’s doubling of US import tariffs on goods from India to 50%, imposed due to New Delhi’s purchase of Russian oil, appears to have hit the flow of Moscow’s crude oil to the South Asian country, although it is unclear how long this trend will continue.

Trump’s tariffs hit India’s Russian oil revenues27.08.25, 15:48 • 2032 views

Deliveries to India have decreased by more than 500,000 barrels per day in the last two months, and even if all tankers without a confirmed destination eventually unload in Indian ports, flows will still decrease by 300,000 barrels per day, or 17%, since the end of June.

The tariff increase may still be reversed or suspended, but refineries plan to reduce purchases of Russian crude oil in the coming weeks, a modest concession to Washington’s pressure, but also a signal that New Delhi does not plan to sever ties with Moscow. Nevertheless, Russia believes the discounts it offers to Indian refineries are large enough for them to continue buying its oil.

The US President has repeatedly stated that he will tighten sanctions against Moscow if it does not agree to a ceasefire in Ukraine, most recently on Friday, but the threats have so far remained empty.

At Trump’s recent meeting with Russian dictator Vladimir Putin in Alaska, the Russian president conceded little but received another reprieve from the threat of secondary US tariffs on China. Chinese refineries have increased purchases of discounted cargoes that India rejected.

Crude oil suppliesAccording to vessel tracking data and port agent reports, 25 tankers loaded 19.07 million barrels of Russian crude oil in the week to August 24. The volume decreased from 21.3 million barrels on 28 vessels the previous week.

Crude oil flows for the period to August 24 averaged about 3.06 million barrels per day over four weeks, up 20,000 barrels per day from the period to August 17. The four-week average smooths out significant fluctuations in weekly figures, providing a clearer picture of underlying crude oil flow trends. Using more volatile weekly data, supplies fell by approximately 320,000 barrels to a four-week low of 2.72 million barrels per day. The drop in weekly flows was driven by fewer cargoes loaded in Ust-Luga.

In addition, one shipment of Kazakh KEBCO crude oil was made from Ust-Luga and one from Novorossiysk during the week.

Russian crude oil exports fall amid drone strikes and Trump tariffs – Bloomberg27.08.25, 14:58 • 1948 views

Russia’s seaborne oilMoscow’s gross export value for the week to August 24 decreased by approximately $110 million, or 9%, to $1.11 billion from $1.22 billion the previous week. The drop in flows was exacerbated by slightly lower average prices for Russian crude oil.

Urals cargoes from the Baltic fell by approximately $0.30 per barrel to an average price of $54.88 per barrel, while Black Sea deliveries fell by $0.10 per barrel to $55.43 per barrel respectively during the week. Both figures were the lowest since mid-June.

The price of the key Pacific grade ESPO moved in the opposite direction, rising by $1.80 to an average price of $63.56 per barrel. Prices for deliveries to India were virtually unchanged at $64.71 per barrel, according to Argus Media data.

Over the four-week average, the export price of Russian Urals oil from the Baltic region decreased by $0.90 per barrel, while Black Sea cargoes decreased by $0.80 per barrel, averaging $56.93 per barrel and $57.30 per barrel respectively, while ESPO prices from the Pacific region decreased by approximately $0.40 per barrel to $63.88 per barrel.

Using this metric, export value decreased by approximately $10 million for the period to August 17, averaging about $1.28 billion per week.

AdditionMany Russian cities and regions are experiencing fuel shortages after Ukrainian drone attacks on refineries. Authorities are rationing fuel, prices are rising, and drivers are queuing for miles.