US urges Ukraine to stop strikes on Russian refineries due to risk of higher oil prices - Financial Times

US urges Ukraine to stop strikes on Russian refineries due to risk of higher oil prices - Financial Times

Podolyak called this information fictitious

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US urges Ukraine to stop strikes on Russian refineries due to risk of higher oil prices - Financial Times

The United States has asked Ukrainian authorities to stop attacks on Russian energy infrastructure, saying drone strikes on oil refineries could lead to a rise in global oil prices and provoke retaliation from Russia.

Source. The Financial Times reports this with reference to three sources familiar with the discussions.

According to the sources, warnings from Washington have been repeatedly sent to the leadership of the SBU and the Main Intelligence Directorate.

Despite the sanctions, Russia remains one of the world's largest energy exporters, the FT reminds. Oil prices have risen by about 15% this year, to $85 per barrel, which has led to higher fuel prices – just as US President Joe Biden is launching his re-election campaign, the publication notes.

In addition, Washington is concerned that Russia, furious at the attacks on its refineries, could disrupt energy infrastructure that is important to the economies of Western countries.

In particular, we are talking about the Caspian Pipeline Consortium (CPC) pipeline, which carries oil from Kazakhstan via Russia to the world market. This pipeline, which Moscow has already briefly blocked in 2022, is used by Western companies, including ExxonMobil and Chevron.

"We don't encourage attacks inside Russia," a representative of the US National Security Council told the FT.

Later, Mykhailo Podolyak, an adviser to the head of the Ukrainian presidential office, said on the Dozhd TV channel that reports of Washington's pressure were false.

"This is fictitious information. After two years of full-scale war, no one will dictate to Ukraine the terms of this war. <...> Under international law, Ukraine has the right to 'degrease' the Russian army, i.e. to destroy the tools of warfare. Fuel is a basic tool for military operations. Therefore, of course, Ukraine will destroy this entire supply infrastructure."

Background. As a reminder, the price of Brent crude oil has risen above $85 per barrel for the first time since November 2023. According to experts, this happened after the International Energy Agency again raised its demand forecasts and said that markets would face a supply shortage this year amid a reduction in production by OPEC+ countries.

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