An apparent Ukrainian drone strike targeted a major Russian oil depot Sunday, and the Trump administration offered its clearest signal to date that it is prepared to unleash powerful secondary tariffs targeting Russia’s oil sector and the nations that buy the fuel.
The attack on the oil depot in the Black Sea coast city of Sochi, for which Ukraine did not officially claim responsibility, reportedly sparked a significant fire and temporarily shut down air traffic in and out of the Sochi airport.
The extent of the damage wasn’t immediately clear, but the attack could deal a blow to the infrastructure Russia needs to move its oil out of the region and to its customers, including China and India.
It would seem to be no coincidence that Ukraine targeted Russian energy sites just as White House Middle East envoy Steve Witkoff was expected in Moscow.
Separately, the administration’s Ukraine envoy, retired Gen. Keith Kellogg, reportedly is headed to Ukraine, though the administration neither released any official statement on either trip nor offered any detail on administration officials’ meetings in either country.
The administration is making a last-ditch diplomatic effort before President Trump’s deadline Friday for the two sides to reach a ceasefire. If Russia doesn’t agree to a deal, the U.S. will impose secondary tariffs on the Russian oil industry, Mr. Trump said. Oil is the lifeblood of the Russian economy and a critical piece of how President Vladimir Putin funds his war machine.
“Secondary” tariffs would heavily penalize the nations purchasing Russian energy, chiefly China and India.
Indirect U.S. economic sanctions targeting India could complicate the relationship between the countries and, in a worst-case scenario, push India closer to Russia and China. The White House appears willing to take that risk.
White House Deputy Chief of Staff Stephen Miller told Fox News’ “Sunday Morning Futures” program that India is essentially helping fund Russia’s war in Ukraine.
“What [Mr. Trump] said very clearly is that it is not acceptable for India to continue financing this war by purchasing the oil from Russia,” Mr. Miller said. “People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That’s an astonishing fact.”
Mr. Trump has made clear he is ready to impose those sanctions if his peace push fails. The president has made no secret of his view that Moscow is the main impediment to a ceasefire.
“Ten days from today, and then, you know, we’re going to put on tariffs and stuff,” Mr. Trump told reporters aboard Air Force One on Thursday. “I don’t know if it’s going to affect Russia because [Mr. Putin] wants to, obviously, probably keep the war going, but we’re going to put on tariffs and various things that you put on. It may or may not affect them.”
Randhir Jaiswal, a spokesman for the Indian Foreign Ministry, indicated during a press conference Friday that India intends to continue buying Russian oil.
So far, the U.S. has been reluctant to embrace secondary tariffs.
Since December 2022, the U.S. and Europe have enforced a price cap on Russian energy, set at $60 per barrel of crude oil. Western companies providing maritime services for transporting that oil, such as insurance, do so only if the oil is sold at or below that cap.
The price cap has been somewhat successful, though Russia is still reaping huge profits. It received about $192 billion in revenue from oil and gas exports last year, according to data from the International Energy Agency.
In a study last year, the Oxford Institute for Energy Studies estimated that Russia gets 30% to 50% of its total federal budget revenue from the oil and gas industry. Much of that money is then funneled into the Russian military.
From December 2022 through February this year, China bought about 47% of Russia’s crude oil exports, followed by India at 38%, according to information compiled by the Center for Research on Energy and Clean Air.
Russia has also reaped greater profits through its “shadow fleet,” or ships without proper insurance or identification, transporting illicit oil at prices outside the cap.
The attack in Sochi on Sunday seems to have been designed to degrade Russia’s ability to move and sell its fuel.
Videos on social media appeared to show huge pillars of smoke billowing above the oil depot. Russia’s civil aviation authority, Rosaviatsia, temporarily stopped flights at Sochi airport.
Authorities in Russia’s Voronezh region, to the north of Sochi, reported that four people were wounded in a separate Ukrainian drone strike, The Associated Press reported.
Around the same time, a Russian missile hit a residential area in the Ukrainian city of Mykolaiv, Ukrainian officials said. It wasn’t immediately clear whether anyone was killed or injured.
Ukrainian authorities said Russia launched 76 drones and seven missiles toward Ukraine overnight. Most were intercepted, but several hit their targets.
The escalating attacks could indicate that Ukraine and Russia are trying to gain leverage during the crucial last days of ceasefire negotiations.
• Ben Wolfgang can be reached at bwolfgang@washingtontimes.com.
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