Estonian economic expert Raivo Vare said that every day Russia can’t use its Baltic Sea port of Primorsk to export oil causes problems for Moscow, writes ERR News.
On March 23, it was reported that Ukrainians attacked Russia’s largest oil terminal in the port of Primorsk on the Baltic Sea, about 50 kilometers from the Finnish border. Primorsk is particularly important for the Russian shadow fleet – old tankers used to circumvent international sanctions. The port is located about 1,000 kilometers from the nearest Russian-Ukrainian border.
The port of Ust-Luga, located near the Estonian border, has also reportedly been temporarily suspended. Vare said that if both ports remain closed, it will have a serious impact on Russian oil exports, the proceeds of which are used to finance the war in Ukraine. The expert noted that more than 60% of the total volume of oil sold is exported through Primorsk and Ust-Luga.
Vare could not calculate Russia’s losses, but said that the capacity of tankers in Primorsk is about 120,000 tons and
the value of one cargo is currently between 50 and 60 million dollars.
The suspension of port operations poses problems for the Russian state budget, as the country taxes oil exports, making it Moscow’s largest source of income. “But if a ship cannot depart because it is not loaded, the tax is also not collected. The damage is therefore greater. It affects not only cargo owners and traders, but also the state. Every day of delay is a problem,” Vare said.
If Russia’s Baltic Sea ports no longer operate, it will affect the international oil market. Vare also noted that the storage facilities in Primorsk are very large, and if one of them catches fire, it will also be impossible to carry out any activities in the surrounding area. Port infrastructure, such as loading cranes and pumps, may also be damaged, making it impossible to load cargo.
Read also: Slovenia first in EU to impose fuel rationing