Novatek, Russia’s foremost energy company, announced on Sunday the compelled suspension of certain activities at an extensive fuel export terminal in the Baltic Sea. The interruption was attributed to a fire reportedly initiated by a drone attack, according to Ukrainian media. Situated on the Gulf of Finland approximately 170 km (110 miles) west of St. Petersburg, the vast Ust-Luga complex plays a crucial role in shipping oil and gas products to global markets. It processes stable gas condensate – a type of light oil – into naphtha and jet fuel, and the liquids are then shipped to overseas markets. It is a significant contributor to Novatek’s revenues.
The plant was put on full alert after the fire, but a statement by the region’s governor said no workers were injured, and all vessels anchored at the site had been evacuated. A video posted by Baza, a Russian news outlet known for its security services contacts, showed large flames shooting into the sky above what appeared to be an industrial complex. The news agency Fontanka quoted an official saying the blaze was caused by external influence.
Ukraine’s Suspilne TV and Ukrainska Pravda cited sources in the country’s Security Service who said the fire was caused by an uncrewed aerial vehicle launched from Ukrainian territory. Both outlets say they could not independently verify the claim. The head of the North Caucasus Federal Security Service warned earlier this month that armed drones might be deployed in the country’s border regions, a threat he said was aimed at destabilizing the situation.
Novatek spokesman Mikhail Khristenko said the company had suspended technological activities at the facility, and a team had been sent to investigate the cause of the fire without giving further details. He added that the Ust-Luga complex had been put on a high alert status, and it was unclear when it would reopen.
The Russian company stopped disclosing operational results for the facility after Russia invaded Ukraine in February 2022. However, last year, the facility produced almost 7 million tons of gas liquids, including a record amount of condensate.
Energy flows to Europe have decreased since then, and several major international energy companies have withdrawn or curtailed their Russian investments. BP, Occidental Petroleum, and Equinor have halted new investments, while Shell, ExxonMobil, and Eni have begun to complete total divestments from their Russian assets. Other foreign producers, such as OMV and Wintershall Dea, have also paused new projects in the country.
The fire at Ust-Luga comes a day after a deadly artillery strike on civilians in a Russian-held city in eastern Ukraine killed 25 people and left more than 100 wounded, which Moscow blamed on an unsuccessful drone attack by Kyiv. The incident has raised concerns of broader Russian retaliation in the conflict, which has escalated to a full-scale invasion of Ukraine’s territory and has drawn the world into the most profound crisis in Ukraine since the Cold War. RFE/RL’s Live Briefing updates Russia’s military incursion, Kyiv’s counteroffensive, and global reaction to the crisis.
