Russian refineries cut oil processing due to losses - Reuters
Photo: Russian refineries cut oil processing (Getty Images)
In Russia, oil refineries are cutting oil processing due to losses. Moreover, there is currently a threat of their closure, according to Reuters.
At least three Russian oil refineries have halted production or reduced processing volumes due to significant losses amid export restrictions, rising oil prices, and high loan costs.
These include the Tuapse, Ilsky and Novoshakhtinsky refineries.
According to the agency, the closure of oil refineries indicates problems in the Russian oil refining industry. Ukrainian drone attacks and Western sanctions force refiners to sell fuel at a discount.
Additionally, the crisis is shrinking fuel exports and reducing company revenues, leading to a decrease in state budget revenue.
The hardest-hit refineries are the least sophisticated ones, which do not produce premium fuel types. They have suffered losses of up to $102 per metric ton during the second half of 2024.
Attacks on Russian refineries
Ukrainian intelligence agencies have consistently targeted Russian oil refineries, oil depots, and other facilities in Russia that supply the Russian army.
Recently, Ukrainian Defense Intelligence's drones struck an oil refinery in Saratov. According to RBC-Ukraine's sources, the drones hit one of the refinery's processing units and fuel oil tanks.
Meanwhile, in the Russian city of Penza, drones attacked an oil storage facility. RBC-Ukraine released footage of the aftermath.
