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Repairs to Russia's Nizhny Novgorod Refinery Hindered by Sanctions

REFINING

Lukoil PJSC will have difficulty repairing to the Norsi Refinery in Nizhny Novgorod amid struggles sourcing essential equipment due to Western sanctions according to Kommersant.

  • On Jan 4 the refinery shut down one of the two catalytic cracking units due to an accident and the replacement of equipment is not possible in the near term due to sanctions.
  • The oil refinery processed about 5% of total refining in Russia at 15m tons of oil in 2022 supplying mostly to the domestic market.
  • The oil company stopped selling AI-95 gasoline on the stock exchange last week with the plant expected to halve gasoline production.
  • Lukoil aims to complete the repairs by spring and was “making every effort to restore normal production conditions.”

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