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Moscow's black gold under siege: drone attacks, Trump's tariffs send Russian crude exports tumbling

global.espreso.tv
Wed, 27 Aug 2025 17:16:00 +0300
Moscow's black gold under siege: drone attacks, Trump's tariffs send Russian crude exports tumbling
Bloomberg reported the information.In the week ending August 24, weekly crude shipments from Russian ports experienced a steep decline of 320,000 barrels a day, bringing the total flow down to a four-week low of 2.72 million barrels a day. This slump was primarily caused by diminished activity at the crucial Baltic port of Ust-Luga, a key outlet for Russian oil heading to international markets. While the more stable four-week average remained steady at 3.06 million barrels a day, the sharp weekly drop signals emerging vulnerabilities.At the heart of the disruption is Ukraine's intensifying military strategy. Kyiv has escalated its attacks deep into Russian territory, with a clear focus on crippling Moscow's oil industry. Recent strikes successfully targeted the Unecha pump station, a vital node in the Druzhba pipeline network near the Belarus border. The attacks have not only choked off piped crude deliveries destined for Hungary and Slovakia but also appear to have created a logistical bottleneck affecting maritime exports from Ust-Luga, which is fed by a pipeline originating at Unecha. The impact is visible in port activity, with only two tankers loading Russian crude at Ust-Luga last week, a significant drop from four the previous week and six in the week to August 10.Simultaneously, on the economic front, President Donald Trump's administration is tightening the financial screws. The White House recently doubled U.S. import tariffs on goods from India to 50%, a punitive measure explicitly linked to New Delhi's substantial purchases of Russian oil. The policy appears to be having its intended effect, as shipments to the South Asian nation have cratered by more than 500,000 barrels a day over the past two months. In response, Indian refiners are reportedly making plans to trim their intake of Russian crude in the coming weeks, a concession to Washington's pressure.The financial toll on Moscow is becoming increasingly apparent. The gross value of Russia's crude exports tumbled by approximately $110 million, or 9%, to $1.11 billion in just one week. This was exacerbated by falling prices for Russia's key Urals grade, which hit its lowest point since mid-June.While Russia is attempting to pivot, the geopolitical chessboard is in flux. With India reducing its purchases, Chinese refiners have reportedly stepped in to snap up the discounted cargoes. This shift underscores a realignment of global energy flows in response to the conflict and associated sanctions. President Trump has continued to voice threats of further sanctions against Moscow, yet Russia is betting that the substantial discounts it offers will be enough to keep buyers in Asia engaged, even as its exports face an unprecedented, multi-front assault.At the heart of the disruption is Ukraine's intensifying military strategy. Kyiv has escalated its attacks deep into Russian territory, with a clear focus on crippling Moscow's oil industry. Recent strikes successfully targeted the Unecha pump station, a vital node in the Druzhba pipeline network near the Belarus border. The attacks have not only choked off piped crude deliveries destined for Hungary and Slovakia but also appear to have created a logistical bottleneck affecting maritime exports from Ust-Luga, which is fed by a pipeline originating at Unecha. The impact is visible in port activity, with only two tankers loading Russian crude at Ust-Luga last week, a significant drop from four the previous week and six in the week to August 10.Simultaneously, on the economic front, President Donald Trump's administration is tightening the financial screws. The White House recently doubled U.S. import tariffs on goods from India to 50%, a punitive measure explicitly linked to New Delhi's substantial purchases of Russian oil. The policy appears to be having its intended effect, as shipments to the South Asian nation have cratered by more than 500,000 barrels a day over the past two months. In response, Indian refiners are reportedly making plans to trim their intake of Russian crude in the coming weeks, a concession to Washington's pressure.The financial toll on Moscow is becoming increasingly apparent. The gross value of Russia's crude exports tumbled by approximately $110 million, or 9%, to $1.11 billion in just one week. This was exacerbated by falling prices for Russia's key Urals grade, which hit its lowest point since mid-June.While Russia is attempting to pivot, the geopolitical chessboard is in flux. With India reducing its purchases, Chinese refiners have reportedly stepped in to snap up the discounted cargoes. This shift underscores a realignment of global energy flows in response to the conflict and associated sanctions. President Trump has continued to voice threats of further sanctions against Moscow, yet Russia is betting that the substantial discounts it offers will be enough to keep buyers in Asia engaged, even as its exports face an unprecedented, multi-front assault.
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