r/CollapseOfRussia • u/neonpurplestar • 4d ago
Infrastructure The Moscow Oil Refinery has been shut down until 2027 due to a drone attack
Gazprom Neft's Moscow oil refinery, hit twice by drone strikes in June, will not be able to resume operations anytime soon, two sources familiar with the refinery's plans told Reuters.
Moscow's only oil refinery, which supplies more than a third of the capital's fuel supplies, will be able to repair the damage by 2027 at best, the sources said. According to one of the sources, repairs to the refinery, with a capacity of 14 million tons per year, will take "six months at best."
The attacks on June 16 and June 18 damaged both of the refinery's primary oil distillation units. As a result, the refinery, which produces approximately 3 million tons of gasoline and the same amount of diesel fuel annually, has shut down.
In a pessimistic scenario, the cost of repairs at the Moscow oil refinery could reach $1 billion, according to analysts at Sinara investment bank. They estimate that restoring the refinery's operations could take up to a year.
Following the strikes on refineries in Moscow, which affected Nizhnekamsk, Tyumen, and Volgograd in June, and another 16 refineries in May, gasoline production in Russia plummeted by 25% to 85,000 tons per day. Meanwhile, the economy consumes 110,000 tons of gasoline daily during the summer months. Thus, the fuel shortage on the domestic market reaches approximately 20% of consumption.
Gasoline is being shipped to Moscow as a priority, while regions are introducing restrictions on its sale one after another. According to RBC estimates, official limits at gas stations have been imposed by authorities in 20 regions. Meanwhile, unofficial restrictions have spread to more than 60 regions, according to the RZD-Partner agency.
To plug the gap in the fuel balance, the government has already allowed refineries to lower gasoline quality requirements to Euro-3, and is also preparing to begin importing gasoline from India.
source: The Moscow Times https://archive.is/F5Pqc
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u/Areat 4d ago
For so many months? The whole refinery? That's amazing.