Ukraine carried out a record number of attacks on Russian energy infrastructure in October, intensifying pressure on the Russian economy as US-brokered peace talks inch forward. The offensive included a series of drone attacks on oil vessels in the Black Sea that Kyiv alleges were part of Russia’s sanction-dodging “shadow fleet,” and strikes on an export terminal that is on Russian territory but includes US and Kazakh shareholders. Periodic blackouts also continued in Kyiv and other Ukrainian cities this week following renewed attacks by Moscow on Ukrainian power infrastructure.
So far it’s not clear that either side’s energy attacks are leading to significant concessions at the negotiating table. But that could change: Helima Croft, head of global commodity strategy at RBC Capital Markets, said in a note on Sunday that ongoing Black Sea attacks could force a “substantial re-rating” of that corridor for commodity shipments, and that the combination of attacks plus sanctions could force Moscow to shut down some oil production facilities “despite its aversion to closing taps in arctic winter conditions.”
Meanwhile, the billionaire part-owner of the Los Angeles Dodgers baseball team has joined the list of contenders to buy the sanctioned company Lukoil’s overseas assets.