Russia launched a major missile and suicide drone offensive on Thursday, bombarding Ukraine's power grid and underground natural gas storage sites.
Bloomberg reports Russia air-launched six hypersonic Kinzhal missiles that hit critical infrastructure near Kyiv and a region around western Ukraine's biggest city, Lviv. Ukraine's air defense system was not able to intercept the hypersonic missiles. However, 18 out of 42 more traditional and slower Russian missiles were downed, and only one of 40 drones.
In a Facebook post, Energy Minister German Galushchenko wrote that power plants near Kyiv, the Kharkiv region in the east, Zaporizhzhia in the south, and Lviv in the west were damaged. Volodymyr Zelenskiy said on Telegram that a power plant was damaged in Odesa.
A person familiar with one of the strikes told Bloomberg that six missiles hit the Trypilska plant south of Kyiv, the largest power plant in the region.
Footage of the destroyed Trypilska plant was posted on X.
🇷🇺🇺🇦 Trypilska Thermal Power Plant in the Kyiv region was destroyed!
— Lord Bebo (@MyLordBebo) April 11, 2024
Trypilska Thermal Power Plant with an installed capacity of 1800 MW was the largest energy generating facility in the Kyiv region. https://t.co/aJa5HRvyHl pic.twitter.com/Zr8TVvgrZc
The Trypilska Thermal Power Plant in the Kiev region was totally destroyed last night. pic.twitter.com/bpcTQK1s2A
— ayden (@squatsons) April 11, 2024
Russia also targeted two of Ukraine's underground NatGas sites during the attack, according to a post on Telegram by Naftogaz Ukrainy, the largest national oil and gas company of Ukraine.
The operator of the underground storage site, Ukrtransgaz JSC, wrote on its website that the missile attack damaged the site's aboveground infrastructure.
While energy traders are bracing for potential strikes on Israel by Iran or its proxies, which could ignite a regional war across the Middle East, Russia's intensified strikes on Ukraine's energy infrastructure are likely the reason European NatGas futures are surging on Thursday, up nearly 7%—the highest in two weeks.
Meanwhile, some of the world's top traders and big banks on Wall Street are eying a possible return of $100 Brent crude.
"The current geopolitical environment continues to provide support to oil prices," said Warren Patterson, the head of commodities strategy for ING Groep NV in Singapore.
A combination of geopolitical tensions and OPEC+ supply cuts pushes crude prices higher, complicating the Federal Reserve's pivot as inflation reaccelerates. Higher energy prices could doom President Biden's election odds come November.
