Ukrainian Drone Strikes on Russian Ports in the Baltic Sea Inflict Significant Losses on the Kremlin — Financial Times
Ukrainian drone strikes targeting Russian ports in the Baltic Sea have dealt a serious blow to the aggressor nation, which is attempting to capitalize on rising oil prices. According to the Financial Times, these strikes have not only caused substantial financial losses for Russia but have also exposed vulnerabilities in its air defense systems.
The recent attacks by Ukrainian drones on Russian ports situated in the Baltic Sea have emerged as a significant setback for Russia, which is currently striving to take advantage of soaring oil prices. Reports from the Financial Times indicate that these strikes have resulted in considerable financial losses for the Kremlin while simultaneously revealing critical weaknesses in its air defense capabilities.
According to Boris Dodonov, head of the energy research department at the Kyiv School of Economics, Russia has incurred an estimated loss of approximately $970 million in revenue over the week spanning from March 23 to March 29, due to five attacks on the ports of Primorsk and Ust-Luga located in the Leningrad region. These assaults on two of Moscow's primary export outlets in the Baltic Sea could significantly diminish the Kremlin's windfall profits, which surged following the spike in oil prices exceeding $100 per barrel, a consequence of the ongoing conflict in Iran.
The Financial Times reports that Primorsk and Ust-Luga account for over 40% of Russia's maritime oil export capacity. Notably, in Primorsk alone, a western security representative indicated that the Ukrainian Defense Forces destroyed oil worth $200 million as a result of the attacks. Ust-Luga, on the other hand, contributes approximately 8% to the global oil supply, and following the strikes in the last week of March, exports from this port have plummeted by around 70%.
Despite Russia's potential to resume oil shipments from the Baltic Sea within a few days, experts caution that this recovery will not be complete. The restoration of burned tanks and repairs to technological lines at the terminals may take months, as noted by the Financial Times.
One source close to the Russian Ministry of Defense informed the publication that the attacks on the Baltic region indicate that Ukraine is outpacing Russia in the production of long-range drones, despite the occupiers' strikes on Ukrainian manufacturing facilities. "If Ukraine can regularly launch cruise and ballistic missiles, the Russian side will suffer even greater losses," the sources told the Financial Times.
Furthermore, Ukrainian drone strikes have been partially responsible for widespread internet outages in Moscow and other regions of Russia. This information was confirmed by dictator Vladimir Putin during a meeting with representatives of major businesses, as reported by a Financial Times source.
Putin's spokesperson, Dmitry Peskov, acknowledged that Russia cannot guarantee "100% protection" of energy facilities from drone attacks, a statement that has sparked a wave of criticism from pro-Kremlin bloggers. Russia has developed a multi-layered defense system that includes electronic jamming, physical barriers, and even reservist units at energy infrastructure sites. However, this is deemed insufficient to counter Ukraine's advancements in drone technology, as highlighted by the Financial Times.
Russian enterprises are now compelled to procure and install protective systems for their facilities independently. "We had to install towers at all our plants and stretch nets between them. We bought everything with our own money. Moscow provided us with nothing," recounted one leading Russian businessman to the Financial Times, adding that he spent at least 1.5 billion rubles ($19.1 million) on these measures.
At the end of March, the Security Service of Ukraine confirmed that long-range drones successfully targeted the oil terminal infrastructure at the port of Ust-Luga in the Leningrad region of Russia. Satellite images have corroborated that significant fires are ongoing at the ports of Primorsk and Ust-Luga. On March 31, drones again attacked the Leningrad region of Russia, marking the fifth strike on the port of Ust-Luga within the last ten days.
According to Bloomberg, following a series of strikes, Russian ports in the Baltic Sea have reduced oil supply volumes to their lowest levels since Russia's invasion of Ukraine in 2022. On April 5, the agency reported that Ust-Luga, after several days of suspension, has begun to resume oil exports at a minimal level.