Ust-Luga coal exports could tighten after attacks on the port

Ust-Luga coal exports are facing growing indirect risks after repeated drone attacks on the port.

The port of Ust-Luga on the Gulf of Finland has come under four drone attacks over the past week — on March 25, 27, 29 and 31. Local governor confirmed damage at the port but said the consequences had been quickly addressed.

Coal terminals were not hit, according to market sources. The attacks primarily targeted oil infrastructure. Still, the repeated strikes have disrupted port operations, with some sources reporting temporary loading delays due to evacuation procedures and heightened security measures.

The bigger concern is indirect. Shipping companies are starting to factor additional risks into their port call planning as the number of incidents rises. That could push up insurance premiums and, in turn, freight rates on the Baltic route.

No direct increase in freight rates has been recorded yet as a result of the attacks. However, traders note that rates are already elevated due to the conflict in Iran and rising bunker fuel prices. Any further pressure on logistics costs would feed through to the final price for buyers of Russian coal in Turkey and North Africa, as well as for Kazakh coal destined for Europe.

In January-February 2026, coal handling in Ust-Luga dropped to 4.6 mio t (-1.6 mio t or -25.9% y-o-y). Future export volumes will depend on how long the current threat level persists.

Source: CCA