Ukraine strikes Russia's top oil port, blocking its ability to earn premium revenue amid rising oil prices

Summary: Ukrainian drones attacked Russia’s Primorsk and Ust-Luga oil export terminals, as well as the Ufa refinery, triggering multiple fuel tank fires and halting port operations—thereby disrupting Russia’s efforts to capitalize on soaring oil prices driven by the Iran conflict. This operation demonstrates Ukraine’s enhanced capability for long-range strikes against energy infrastructure, while further tightening global energy supply. To prevent Russia from profiting unexpectedly from recent oil price hikes triggered by the Iran conflict, on March 23 Ukraine launched a large-scale drone assault on Russia’s largest oil export terminal—the Primorsk terminal in Leningrad Oblast. On March 24, the Daily Telegraph reported that this Baltic Sea coastal port exports one million barrels of crude oil daily and serves as the hub for the Kremlin’s sanctions-busting “shadow tanker” fleet. Satellite imagery showed massive fires and thick smoke rising over the port after multiple fuel storage tanks were struck by drones—near Finland and roughly 1,000 kilometers from Ukraine’s border. Alexander Drozdenko, Governor of Leningrad Oblast, posted on Telegram that several fuel depots at the Primorsk oil export terminal caught fire following the drone strike due to tank damage and fuel leakage—but did not specify whether oil exports were affected. Ukraine’s Unmanned Systems Forces claimed responsibility, stating the terminal—serving as the endpoint of the Baltic Pipeline System—was being “used by the enemy to circumvent international sanctions.” The Ukrainian General Staff later confirmed that “both the tank farm and loading infrastructure at the Primorsk oil terminal were struck.” Last September, Ukrainian drones had previously attacked the heavily fortified Primorsk oil hub, temporarily halting oil loading. Yet this latest strike was markedly more explosive and destructive, suggesting potentially heavier losses—and raising speculation about missile use, particularly the new “Flamingo” weapon with a 1,150-kilogram warhead. The Daily Telegraph reported that the terminal’s passenger and cargo terminal remained closed from Monday afternoon through Tuesday morning—suggesting the Primorsk oil export terminal had suspended operations due to the attack. Meanwhile, Bashneft-Ufaneftekhim Refinery in Ufa, central Russia, was also struck on Monday. Severe fires persisted into Tuesday morning, forcing the refinery to halt operations. Bashneft-Ufaneftekhim Refinery is a critical node in the Russian Armed Forces’ fuel supply chain, with an annual crude processing capacity of approximately 6–8 million tons. It lies about 1,400 kilometers from Ukraine’s border. On Monday, the Ust-Luga export hub also reported drone strikes and ensuing fires. This facility handles 700,000 barrels of oil per day. Ust-Luga exported 32.9 million tons of petroleum products last year; Primorsk exported 16.8 million tons. Both are among Russia’s largest oil export facilities—and both have suspended exports since Monday’s drone attacks. The coordinated strikes against Primorsk, Ust-Luga, and Ufa mark a significant milestone in Ukraine’s long-range campaign targeting Russia’s energy infrastructure—aimed squarely at undermining its war economy.

1,000 drones per day: Zelenskyy announces the start of ‘closing’ Russia’s skies

In part, this warning also signals a strategic assertion of parity. Ukraine’s airspace has been closed to civil aviation since February 24, 2022—the very day Russia launched its full-scale invasion. For over four years, no commercial flights have been permitted into Ukrainian airspace. All civilian airports—including Kyiv’s Boryspil—have ceased commercial operations, and 15 of Ukraine’s 20 civilian airports have been damaged during the war. According to forecasts by the European Union Aviation Safety Agency (EASA), Ukrainian airspace may not reopen until 2029. Thus, President Zelenskyy’s September 1 statement forms a kind of strategic闭环 (closed loop): after Ukraine’s airspace has remained inaccessible for four-and-a-half years due to Russia’s “special military operation,” Ukraine is now attempting—via drones—to render Russian airspace equally unsafe. II. Escalation in Drone Attacks: 1,000 Drones Per Day Zelenskyy’s warning is no empty threat. On August 28, he announced at a meeting of Ukraine’s Supreme Command that long-range drone strikes against Russian territory would surge from an average of over 300 per day to 1,000 per day. “We currently conduct over 300 long-range strikes per day—but it must be more,” Zelenskyy said. “We have a very clear goal, and we will certainly accomplish this mission.” In practice, the scale of Ukrainian drone operations is rapidly expanding: August 25–26: Ukrainian drone swarms swept across sixteen Russian regions. August 28–30: Ukrainian drones struck refineries in Yaroslavl and Leningrad Oblasts, Yeysk Air Base, and logistics warehouses in Rostov Oblast. August 31: Ukraine launched a larger-scale drone swarm operation, covering Belgorod, Bryansk, Voronezh—and extending all the way to the Moscow suburbs. Early on September 1: Ukrainian drones struck Novatek’s oil and gas processing and transshipment complex at the Baltic Sea port of Ust-Luga, igniting major fires. Ust-Luga is Russia’s second-largest port; in 2025, its refined product exports accounted for nearly one-third of Russia’s national total. According to Bloomberg’s aggregation of publicly released statements from both sides, Ukraine carried out at least 21 attacks on Russian refineries in August alone—the highest monthly tally since the war began. Bloomberg and LSEG data show that, following a sharp increase in gasoline imports beginning in July, Russia imported nearly 460,000 tons of gasoline via seaports in August—a telling indicator of severe damage inflicted upon its domestic refining capacity. Over the past month, Ukrainian drones have also struck more than 20 logistics warehouses belonging to Wildberries and Ozon—Russia’s equivalents of JD.com and Taobao. According to the Chief Financial Officer of Sberbank of Russia, consumer spending in Russia’s e-commerce market declined by 15% over recent weeks. Clearly, Ukrainian drones are systematically targeting Russian energy facilities, logistics hubs, and military bases—seeking to squeeze the sustainability of Russia’s war effort at its source. Zelenskyy has dubbed this strategy “fighting to force negotiations”: “If Russia does not wish to rationally discuss ending the war, it will suffer even greater losses.” The goal of launching 1,000 drones per day is fundamentally to escalate economic pressure on Russia’s energy sector, logistics networks, and export capacity—from merely ‘perceptible’ to ‘unbearable.’

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A drone attack ignited a fire at Russia’s Ust-Luga port, a major Baltic oil export hub, injuring three workers. While it remains unclear if oil loadings were disrupted, the incident follows recent strikes on regional energy infrastructure including Novatek and Rosneft facilities.

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Drone Attack Sparks Fire at Russia’s Ust-Luga Port, Injures 3

Drone Attack Sparks Fire at Russia’s Ust-Luga Port, Injures 3

FAQ