Gazprom under fire from Ukraine: Russia's oil refining at lowest level in 24 years

Ukraine's sustained drone attacks have crippled Russia's oil refining sector, pushing its processing capacity to its lowest point in more than two decades. In July, refinery utilization dropped by 27% compared to the previous year, and 30% compared to July 2021, before Russia's full-scale invasion of Ukraine.

Recent reports indicate that Russia's gasoline production now meets only 65% of its summer demand, while diesel production covers just 40%. This shortfall has forced Russia, a major oil producer, to import fuel from nations including India and China. The crisis threatens critical sectors, potentially impacting the upcoming harvest season.

Over the past 100 days, Ukrainian drones have reportedly struck Russian oil refineries approximately 50 times, damaging at least 24 of the country's 34 largest facilities. Attacks have targeted refineries across Russia, including the major Omsk refinery located 2,500 kilometers from the Ukrainian border. The Taneco refinery, owned by Tatneft, has also been shut down.

Estimates suggest Russia's daily oil processing in July stands at 3.58 million barrels, the lowest since at least 2002. Approximately 3.1 million barrels per day of refining capacity are currently damaged, with uncertain timelines for repairs. A recent strike on the Gazpromneftiechim Salavat LLC refinery in Bashkiria halted another major processing plant, reducing daily supplies to the Russian market by about 5% of the country's fuel demand.