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Drone Strike Sparks Blaze at Russian Oil Terminal

A drone strike sparks a major fire at Ust Luga, Russia's largest Baltic Sea export terminal for oil and other commodities, after an overnight Ukrainian attack early Friday.

What Happened at the Port

Alexander Drozdenko, governor of Russia's Leningrad region, said on Telegram that drone damage triggered the blaze at Ust Luga. Firefighters worked through the morning to bring it under control. Later in the day, Drozdenko posted that all consequences of the strike had been cleared and that nobody was hurt.

This marks at least the second known Ukrainian drone strike on the facility this year, following an earlier attack in early July. Ust Luga handles a significant share of Russia's crude oil, refined fuel, coal, fertilizer and grain shipments moving through the Baltic, making it a recurring target as Kyiv widens its campaign against Russian energy infrastructure.

A Widening Campaign Against Russian Refineries

The Ust Luga fire came a day after Ukrainian forces hit Gazprom's Neftekhim Salavat refinery complex in the Urals, another sign that Kyiv is pressing deeper into Russian territory to disrupt fuel production. Ukraine has spent much of this year striking refineries, tankers tied to Russia in the Black Sea and Sea of Azov, and the pipelines and rail lines that move fuel toward the front.

The strategy appears aimed squarely at Russia's wallet and its war machine at once: choking export revenue while limiting fuel available to troops.

Fuel Shortages Force Russia to Import Gasoline

The pressure is showing up in trade data. Russia has reportedly begun importing gasoline from India, with a 42,000 ton cargo from Nayara Energy's Vadinar refinery arriving earlier this month. Notably, Vadinar is partly owned by Rosneft, Russia's largest oil producer, which also supplies the crude that refinery processes, an unusual loop given Moscow's typical role as an energy exporter rather than importer.

Exports of Diesel Hit Multi Year Lows

Russia's diesel and gasoil exports fell to just 80,000 barrels per day in the first seven days of August, among the lowest levels seen in years, according to trade tracking cited in industry reports. Moscow has extended restrictions on diesel exports to manage a domestic fuel crunch.

That crunch has persisted for more than three months, arriving right as seasonal demand peaks. Ukraine's sustained drone campaign has knocked large refining sites offline repeatedly through spring and summer, leaving Russian regions grappling with gasoline and diesel shortages even as the Kremlin scrambles to patch the gap with imports.