Ukraine seizes Russian oil tankers
AI generated imageNew Delhi - The blockade of the Strait of Hormuz by Iran had already significantly disrupted global oil transportation.
In such a situation, oil from Russia was meeting a large share of the world's energy needs, including those of India. However, Russia's oil supply is now also facing a crisis. Due to recent attacks by Ukraine, Russia has suffered major losses. Drone strikes have caused significant damage to Russia's oil infrastructure, and several oil tankers have been seized. As a result, at least 40% of Russia's oil export capacity has been disrupted. This is a serious situation for the world's second-largest oil-exporting country.
Targeting of export ports
This month, Ukraine intensified drone attacks on Russia's oil infrastructure, particularly targeting three major export ports: Novorossiysk in the Black Sea, Primorsk in the Baltic Sea, and Ust-Luga in the Baltic Sea.
Russia's losses
Around 20 lakh barrels per day of export capacity has been shut down. Parts of the Druzhba pipeline, which supplies oil via Ukraine to Hungary and Slovakia, have been damaged in the attacks. The Novorossiysk terminal is operating far below its capacity of 7,00,000 barrels per day. Seizure of Russian-linked oil tankers in Europe has halted Arctic oil exports of about 3,00,000 barrels per day from Murmansk port.
Impact on India
A reduction in oil supply from Russia could also affect India. Before US sanctions, India had imported large volumes of Russian oil last year. During the Iran conflict, after the United States lifted a 30-day restriction on Russian oil, India received significant supplies. India has booked 60 million barrels of Russian crude oil for the coming month. Any disruption in supply could affect domestic availability and lead to a rise in petrol and diesel prices.
Rise in oil prices
Due to the Iran conflict, international crude oil prices have crossed $100 (₹9,400) per barrel. Prices of US WTI crude have also risen by about 2%, exceeding $92 per barrel. Oil revenue remains a key pillar of Russia's economy.
Editorial Perspective Russia had become an alternative source of oil for many countries amid disruptions in the Strait of Hormuz. However, if Ukraine's attacks begin to restrict this supply as well, it could lead to a major global crisis. India, too, needs to take this situation seriously. |