Russian Refinery Closures Loom: Impact on Global Oil Markets Debated
Three Russian oil refineries—Tuapse, Ilyich, and Novoshakhtinsk—have curtailed or halted production due to mounting losses stemming from Ukrainian drone strikes, Western sanctions, and reduced profit margins. These plants, operating at reduced capacity or facing temporary closures, are experiencing significant financial strain, selling fuel at a discount and incurring high interest rates. The resulting drop in fuel exports and revenue impacts the state budget, exacerbating existing economic pressures. This situation is further complicated by increased oil costs exceeding the profit threshold for independent refiners.
John Q. Hosedrinker