Main points
- The American company ADM temporarily stopped operations at its plant in Chornomorsk due to damage from a drone attack on April 26.
- After the incident, ADM stopped purchasing raw materials, damage assessment and restoration work are underway.
The oil refinery of the world giant stopped after the shelling / Collage of Channel 24, illustrative photos by ukragroconsult, Pexels
The American company ADM has temporarily suspended operations at its oil extraction plant in Chornomorsk due to damage sustained by the company following a drone attack on April 26.
What is known about the shutdown of the ADM oil extraction plant?
The company confirmed that production has not yet resumed, writes Latifundist.
According to the company, the decision to stop is temporary and is related to safety risks and the technical condition of production facilities. A number of damages were recorded after the impact:
- one of the tanks was damaged
- there was a partial oil leak
- some of the containers were damaged by debris
According to market sources, the company also temporarily suspended raw material purchases following the incident. Restoration work and damage assessment are currently underway at the plant.
Operations at ADM's oil extraction facility in Chornomorsk, Ukraine, remain suspended following damage caused by a drone strike on April 26. The safety of our employees is our highest priority and we continue to monitor the situation closely.
– the company said.
What does this mean?
A shutdown of the ADM plant could have several consequences:
- temporary reduction of processing capacity in the region
- potential disruptions in the logistics of oil products
- additional pressure on other processing plants
- possible reformatting of raw material purchases on the market
Note! Oil extraction plants are key elements of Ukraine's agricultural infrastructure, as they provide processing of oilseeds for export. Chornomorsk has traditionally been an important logistics hub for agricultural products, so the shutdown of such a plant affects not only local production, but also export chains.
Why is Russia attacking US businesses in Ukraine?
Russia's exact motivation is officially unknown. Some Ukrainian businessmen believe that this is part of a larger campaign against the Ukrainian economy as a whole. Others are convinced that this is an attempt to stop American investments in Ukraine, writes the NYT.
American companies, according to the NYT, have already expressed concerns to Washington about what they believe are deliberate attacks. However, the Trump administration's response has been muted. The White House has not publicly condemned any of the strikes on American assets reported by Ukraine.
Meanwhile, as reported by Ukraine's Ambassador to the United States, Olga Stefanyshyna, Washington has called on Kyiv to refrain from striking a Russian oil terminal in the Black Sea linked to American interests. This has sparked criticism and accusations of double standards.
Recently, representatives of several American companies, including Cargill, Coca-Cola, and Bunge, met with American senators during their visit to Ukraine.
We listened to several of them. In their opinion, they were hit deliberately,
– said Senator Jeanne Shaheen of New Hampshire.
Andy Gunder, head of the American Chamber of Commerce in Ukraine, said that Russia is thus trying to scare investors and stop American businesses from coming to Ukraine.
Attacks have increased after new agreements between Ukraine and the US
The article notes that the increase in attacks coincided with the deepening of economic cooperation between Kyiv and Washington:
- Last year, Ukraine and the United States signed a large-scale agreement on investments in the energy sector.
- And already this year, the Ukrainian authorities signed a contract to develop a large lithium deposit with a company partially affiliated with the United States.
Former Deputy Minister of Economy of Ukraine Oleksandr Romanishyn believes that Russia is trying to make American assets in Ukraine an “unacceptable risk” for business. According to him, the US response in this situation is important not only for Ukraine.
Either Washington is sending a convincing signal that American businesses will be protected, or it is quietly accepting a precedent that other authoritarian regimes will study very carefully: that you can attack US-affiliated companies abroad and face only rhetorical concern.
– says Romanishyn.
Why is Russia attacking Odessa and the region?
Odessa and the region are being attacked by combined groups of drones. According to experts, they could have included jet drones, which indicates a possible testing of new strike tactics, UNIAN writes.
Military-political observer Oleksandr Kovalenko notes that it is currently difficult to accurately determine the type of devices used, but the nature of the attack may indicate the experimental use of new means.
Oleksandr Kovalenko
Military and political observer of the group “Information Resistance”
I cannot yet name the exact modification of the jet drones, but most likely the tactics and effectiveness of using these means were tested in Odessa, taking into account the growing rates of interception of enemy targets by interceptor drones.
According to him, back on January 11, the Main Intelligence Directorate of the Ministry of Defense of Ukraine reported on the first use of the “Geran-5” modification. In fact, this is a small-sized subsonic cruise missile.
In addition, the Russian army began using Shahed-238 jet drones earlier – the first reports of their downing appeared in early 2024. Last year, they were used during attacks on Ukraine, but these devices have not yet been widely used.
As Ukraine actively develops drone interception systems, the Russian side is looking for ways to bypass this defense. As the expert notes, the main areas remain increasing the speed or maneuverability of drones.
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Another enterprise was damaged during the shelling of Chornomorsk
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In early May, Russian drones attacked the Kernel terminal in Chornomorsk, resulting in the leakage of over 1,100 tons of oil, but the leak was quickly contained.
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The attack caused a large-scale fire, damaged infrastructure and suspended terminal operations, affecting logistics chains and the economy.