Sanctions hinder the repair of Russian oil refineries

Russian oil companies are experiencing difficulties in repairing oil refineries. Due to American and Western sanctions, refineries cannot find the necessary spare parts and specialists to install them. Reuters writes about this, citing several sources.

Thus, on January 4, a gasoline production unit at the Lukoil-Nizhegorodnefteorgsintez (NORSI) oil refinery broke down. The agency, citing five sources familiar with the situation, writes that there is only one company that could help with the repairs, but it is American. This company is part of the transnational concern UOP. She left Russia after the start of a full-scale invasion of Ukraine.

“Engineers rushed to look for spare parts, but could not find anything. Then the entire installation simply stopped,” said a Reuters source close to Lukoil. As a result, one of the largest NORSI plants reduced gasoline production by 40%, the agency emphasizes.

A week ago, Deputy Prime Minister Alexander Novak said that Lukoil expects to restore broken equipment at the NORSI refinery within one to two months. According to him, the equipment necessary for repairs is produced in Russia.

However, due to attacks by Ukrainian drones, the situation is only getting worse. Since the beginning of the year, they have struck at least 12 Russian oil refineries. As a result, gasoline production in Russia decreased by more than 14%.

“If drones continue to attack at the same rate, and Russian air defenses do not improve, then Ukraine will be able to reduce Russian oil refining capacity faster than Russian firms can repair them,” says Sergei Vakulenko, an expert on the Russian energy industry and non-resident fellow at the Carnegie Endowment.

At the end of March, the Financial Times reported that the United States called on Ukraine to stop attacking Russian energy infrastructure, in particular, enterprises in the fuel and energy complex. Washington fears that these attacks will lead to higher oil prices.

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