Sulmet, a Ukrainian company, is undertaking a $1 billion oil terminal project in Russia, according to a report by the Financial Times. The terminal will be located in the Baltic Sea at Ust-Luga and Primorsk and is intended to facilitate the export of Russian oil to Europe. The initial phase of the project, costing an estimated $970 million (842 million euros), is slated for completion in the first quarter of 2026.
This investment will significantly increase the capacity of both Ust-Luga and Primorsk, boosting their ability to handle oil shipments by 40 percent, as reported by the Financial Times. Sulmet will contribute $100 million to the project. A security source cited by the Financial Times indicated that $200 million will be used for operations at the Primorsk location.
The project’s purpose is to enhance the flow of Russian oil to European markets. Details regarding the full funding structure and specific operational aspects of the terminal are still emerging.
