Ukraine hits St. Petersburg oil terminal as Russia's fuel crisis deepens

Attack on St. Petersburg oil terminal

Ukrainian forces struck a major oil terminal in St. Petersburg in the early hours of Saturday, 4 July, setting it ablaze. The facility, located on the Gulf of Finland, is one of Russia's largest fuel storage and export hubs, with an annual capacity of about 12.5 million tons. President Volodymyr Zelensky confirmed the attack, describing it as "another long-range sanctions against Russia" targeting infrastructure that funds the war. He also reported hits on a military target in the nearby port of Kronstadt, over 850 kilometers from Ukraine's border.

Ukraine's defense forces attacked port oil infrastructure that earns money for the Russian war, and also recorded hits in Kronstadt - an important military target. The distance from Ukraine's state border is over 850 kilometers.

Residents reported explosions and drones flying overhead around 6:30 a.m. local time. Russian officials said dozens of drones were shot down in the Leningrad region overnight, and the defense ministry claimed to have intercepted 389 out of about 400 drones that targeted 18 regions, Crimea, and areas over the Azov and Black Seas. The claims could not be independently verified. In Belgorod, power and water outages were reported, but no casualties.

Russia's deepening fuel crisis

The strike adds to a mounting fuel crisis inside Russia, driven by a series of Ukrainian attacks on refineries. Gasoline production in June was down about 25% compared to the same period last year, according to independent Russian media. Wholesale gasoline and diesel prices at storage depots hit records in late June, trading 80-90% above levels on the St. Petersburg Commodity Exchange. In European Russia, a ton of gasoline cost 130,000-140,000 rubles (roughly $1,500-$1,600).

On 2 July, drones again struck the NORSI refinery, Russia's fourth-largest and the second-largest gasoline producer, operated by Lukoil. The refinery suspended wholesale sales of gasoline and diesel on the exchange. The terminal in St. Petersburg, which before the attack held 21 oil tanks, is a critical export gateway; its loss further strains supply chains already under pressure.

Russian strikes on Ukraine

While Ukraine struck deep inside Russia, Moscow continued its own aerial campaign. On Friday, 3 July, Russian forces bombed the center of Sumy in northern Ukraine with six bombers, killing four people including a child. Attacks across Donetsk, Dnipropetrovsk, and Kherson regions killed at least eight and wounded 42, according to Ukrainian officials. In Dnipropetrovsk, residential buildings and a gas station were hit; in Kherson, a rescue center, gas pipeline, agricultural facility, and vehicles were damaged, and a poultry farm was set ablaze.

Russia's military also told President Vladimir Putin that its forces had taken control of Kostiantynivka, a key town in Donetsk region that Moscow has long sought in its offensive toward Kramatorsk and Sloviansk.

Zelensky's 40-day drone campaign

The intensified drone strikes are part of a 40-day "super operation" announced by Zelensky on 26 June, aiming to pressure Russia into ending the war through sustained medium- and long-range drone attacks. On the first day, Ukraine launched 660 drones. The latest attack on St. Petersburg came a month after Ukrainian forces struck the city during an international economic forum attended by Putin, and three days after one of Russia's largest attacks on Kyiv this year, which killed at least 30 people.

Peace talks mediated by the United States have been suspended due to the conflict in Iran, but both Moscow and Kyiv expect a visit soon from US negotiators Steve Witkoff and Jared Kushner.