Russian Refineries Struggle Amid Economic and Geopolitical Challenges

Several Russian refineries, including Tuapse, Ilsky, and Novoshakhtinsky, have halted or reduced operations due to financial losses, attributable to export restrictions, rising crude prices, and high interest rates. These challenges are compounded by geopolitical tensions, affecting fuel exports and company revenues, while impacting the state budget.

At least three Russian refineries have faced operational halts amid mounting economic pressures. The closures are driven by export curbs, a rise in crude prices, and skyrocketing borrowing costs, according to industry insiders.

The sources revealed that key plants such as Tuapse, Ilsky, and Novoshakhtinsky encountered disruptions, a situation yet to be reported. This development not only impacts fuel exports but also contributes to reduced company revenues, crucial during periods of inflation and energy market instability.

The refineries' struggles underline the broader challenges faced by Russia's oil sector amid geopolitical tensions, further exacerbated by Ukrainian drone attacks and Western sanctions.

(With inputs from agencies.)