“Russian refineries cut oil processing due to losses, face closure — Reuters Nov 15, 17:33 Share: Russian refineries cut oil processing (Photo: vnpz.lukoil.ru) At least three Russian refineries have been forced to stop processing or cut production due to significant losses against the background of export restrictions, rising prices of raw materials and high borrowing costs. Reuters writes about this. According to the publication, it is about”, — write on: ua.news
Russian refineries reduce oil processing (Photo: vnpz.lukoil.ru)
At least three Russian refineries have been forced to halt processing or cut production due to heavy losses amid export restrictions, rising raw material prices and high borrowing costs.
Reuters writes about it.
According to the publication, we are talking about the Tuapsyn, Ilsky and Novoshachtinsky refineries.
“The closing of the plants shows the difficulties of the Russian oil refining industry, which has been targeted by Ukrainian drone attacks, Western sanctions against Russia, which force refiners to sell fuel at a discount, as well as high interest rates,” the newspaper writes.
It said that in 2021 and 2022, oil refiners around the world saw record profits thanks to a post-pandemic surge in travel demand and a recovery in economic activity.
But then margins plummeted as huge new factories opened around the world and demand growth slowed.
“Russia’s least technological refineries, which do not produce premium fuels, suffered the most, suffering losses of up to 10,000 rubles ($102) per metric ton within a few months of the second half of 2024,” Reuters writes.
Russia has 30 large and medium-sized refineries, not counting several small ones, capable of processing 5.5 million barrels per day, making it one of the world’s largest fuel exporters.
The Russian Federation exports about 2 million barrels per day of oil products, and the rest is consumed domestically.
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