Russian energy giant Novatek announced the suspension of operations at its Ust-Luga fuel export terminal, located on the Gulf of Finland, approximately 170 km west of St. Petersburg. The move comes in the wake of a massive fire that erupted at the facility, allegedly initiated by a Ukrainian drone attack, according to Ukrainian media reports.
The Ust-Luga complex plays a pivotal role in Russia’s energy export infrastructure, processing stable gas condensate into various oil and gas products for international markets. However, the extent of the disruption’s impact on international energy markets remains uncertain. The terminal is a crucial link in the supply chain, shipping oil and gas products globally.
The fire, which has reportedly been brought under control, raises questions about the effectiveness of Russian air defense systems protecting key infrastructure facilities. If confirmed, the drone attack signifies a significant shift in tactics by Ukraine, demonstrating its ability to conduct strikes deeper into Russian territory using domestically produced drones.
The Interfax-Ukraine news agency, citing unnamed sources, suggested that the fire resulted from a special operation carried out by Ukraine’s security services. One source highlighted the strategic importance of the Ust-Luga terminal, emphasizing its role in supplying fuel to Russian troops. Disrupting such a facility not only inflicts economic damage on the enemy but also complicates logistics for the Russian military, according to the source.
While Reuters could not independently confirm the details of the drone attack, the incident comes amid heightened tensions between Russia and Ukraine. Recent days have seen apparent strikes targeting Russian energy facilities, indicating a deliberate effort by both sides to disrupt each other’s energy infrastructure.
The situation is exacerbated by an alleged Ukrainian artillery strike on civilians in a Russian-held city in eastern Ukraine, resulting in at least 25 deaths. This series of events could potentially trigger broader Russian retaliation in a war that shows no signs of resolution.
Alexander Drozdenko, the governor of the Leningrad region where the Ust-Luga terminal is located, assured via the Telegram messaging app that there were no casualties, and all workers had been safely evacuated. However, the exact duration of the disruption remains unclear, as does the number of tankers affected and the subsequent impact on global energy markets.
Novatek, Russia’s largest liquefied natural gas producer, issued a statement acknowledging the suspension of some operations due to the fire, attributing it to “external influence.” An operational headquarters has been established to assess the damage and mitigate the consequences, with further updates expected after the assessment.
The incident underscores the vulnerability of critical energy infrastructure in the ongoing conflict, emphasizing the broader geopolitical ramifications of the war between Russia and Ukraine.