Ukrainian Drone Strikes Reduce Russian Refining Capacity by 30 Percent

Ukrainian drone strikes have reduced Russian oil-refining capacity by roughly 30 percent. The attacks lowered refining throughput to a 21-year low during peak summer demand. Russia has begun importing gasoline from India by sea.

Industry sources told Reuters that two tankers carrying at least 60,000 metric tons, or 510,000 barrels, of gasoline left Indian ports for Russian destinations. These shipments are the first reported seaborne fuel deliveries from India to Russia. Gasoline consumption in Russia has risen to at least 110,000 metric tons per day, creating a daily shortfall of about 25,000 tons, according to Reuters.

The Russian parliament last week approved tax amendments providing subsidies tied to Indian delivery costs and port prices. Officials plan to import 400,000 metric tons of gasoline each month from India and other suppliers, a volume expected to cost more than $350 million. Belarus increased its rail deliveries to Russia to more than 70,000 tons in the first half of June.

Indian refiners imported 2.6 million to 2.7 million barrels per day of Russian crude in June. Ukraine’s long-range strikes have repeatedly targeted Russian refineries, fuel depots, and petrochemical plants over the past year, forcing Russia to restrict fuel exports to protect domestic supplies.