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Free AccessRussian Refineries Struggling for Parts Under Sanctions
Western sanctions are making it hard for Russia to repair its damaged refineries after Ukrainian drone strikes according to Reuters sources.
- Lukoil’s NORSI refinery lost a turbine for its gasoline producing unit which requires a US company to produce the parts and fit - no longer available under sanctions.
- A catalytic cracker used to convert heavier hydrocarbons into gasoline at the refinery has also been out of production since January and it was not clear when it could be repaired due to a lack of expertise inside Russia according to the sources.
- Gasoline production at the refinery is reported to be down 40%. The refinery has a capacity of 405,000 metric tons a month of gasoline or 11% of Russia's total.
- Russian Deputy PM claims NORSI will be running within a month or two with Russian firms working to produce the spare parts.
- Russian Minister Nikolai Shulginov said on Wednesday all refineries would be fixed by June, without providing further details.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.