Russian Refineries Hit by Drone Attacks; Lukoil Plant Halts Operations

Russia's oil industry is facing significant disruptions following a series of drone attacks on its refineries. On Tuesday, June 2, the largest refinery in the Krasnodar region was engulfed in flames after a drone strike. This incident follows the shutdown of Lukoil's key refinery in Volgograd, which annually processes 13.5 million tons of crude oil.

The Volgograd refinery, one of southern Russia's largest, halted operations on May 29 after a Ukrainian drone attack caused a fire and substantial damage. According to Reuters sources, the CDU-1 crude distillation unit, responsible for approximately 40% of the plant's processing capacity, has been shut down, along with two other installations.

Ukraine's General Staff confirmed damage to another refinery, the Ilsky refinery in Krasnodar Krai, on June 2. Described as one of the largest in southern Russia with a capacity of about 6.6 million tons of crude oil annually, this refinery produces petroleum products crucial for the Russian Armed Forces. Ukraine reports having conducted at least 16 attacks on this facility since 2023.

These attacks are part of a broader Ukrainian strategy to cripple Russia's energy sector. President Volodymyr Zelenskyy stated that Ukrainian forces attacked 15 Russian refineries between January and May, immobilizing nearly 40% of the country's oil refining capacity by May. Russia is experiencing fuel shortages, including a ban on jet fuel exports and rationing in Crimea. Global refining capacity has also been impacted, with attacks on oil facilities in the Middle East and Russia leading to a loss of over 9% of global refining capacity, according to Reuters.

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The Ilsky refinery is one of the largest oil refineries in the south of the Russian Federation. Its processing capacity is about 6.6 million tons of oil per year. The refinery produces petroleum products used, in particular, for the supply of the Russian Armed Forces.