Ukraine strikes 15 Russian oil refineries, causing $23.2 billion in damage

Ukraine's Military Intelligence (HUR) agency stated on Thursday that airstrikes have knocked 15 of Russia's 38 major oil refineries out of operation. The agency estimated the strikes have caused more than $23.2 billion in economic damage to the country's oil industry.

Impact on Russian Oil Production

According to HUR, the strikes have resulted in the following impacts on Russia's oil sector:

• Refinery Status: 15 refineries are out of operation, while 12 others are running at reduced capacity.
• Processing Volumes: Kyiv added that the attacks have effectively cut Russia's processing volumes by 55.4% compared to the beginning of the year.
• Capacity Loss: Five facilities hit as of September, including the Ryazan Oil Refining Company, account for 33% of Russia's total volumes, according to the HUR.
• Specific Facilities: Affected facilities include the Slavneft-YANOS refinery, the Kirishi refinery, the Ryazan and Moscow refineries, and Lukoil's Perm refinery.

Ukrainian intelligence noted that replacing damaged equipment alone could cost Russia more than $20 billion, noting that international sanctions and the high cost of components complicate repairs.

Russian Response and Logistics

To compensate for lost capacity, Russia has increased processing at refineries located farther from Ukraine, such as facilities in Omsk, Achinsk, Khabarovsk, Mari, and Vanino. In September, these facilities processed a combined 906,000 barrels of oil per day, which accounted for approximately 24% of Russia's total refining volume, according to HUR.

However, the HUR stated that this strategy has logistical limitations, noting that "the possibilities for such substitution are limited by the geographical location of the facilities." The agency added that transporting petroleum products is complicated by shortages of road tankers and railway rolling stock.

HUR also pointed to a September 28 decree signed by Russian President Vladimir Putin that restricts access to information regarding Russia's oil refining volumes, describing it as an attempt to conceal the industry's condition.

Ongoing Conflict and Infrastructure Attacks

Ukrainian President Volodymyr Zelensky stated at the Ibero-American Summit that Russian suicide drones and missiles continue to hit critical infrastructure, including energy equipment that nuclear power plants depend on. "Every power plant in Ukraine has been damaged in one way or another by Russian attacks," Zelensky said.

Zelensky stated he would be open to stopping the strikes on Russian oil refineries if the Kremlin halts its attacks on Ukraine's energy infrastructure.

In response to the ongoing conflict, the Kremlin reported that Moscow has bombed a postal logistics hub of Nova Poshta, a private delivery company in Ukraine. The Kremlin also stated that Russian forces hit a power substation in the Dnipropetrovsk region and a cargo ship in the Black Sea.

Why it matters

The refinery attacks have led to gas shortages in various Russian regions, including the annexed Crimea. While the HUR estimates significant economic damage and production loss, these estimates could not be independently verified.

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Sources

• nypost.com: Ukraine knocks out 15 Russian oil refineries, causing $23.2 billion in damage: officials
• hromadske.ua: Ukraine says strikes disabled 15 major Russian refineries

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.