Rosneft warns repeated refinery strikes could cause lasting damage
Rosneft executives fear that several more months of war in Ukraine could cause lasting damage to the company, Bloomberg reported, citing people familiar with the matter. Repeated drone strikes have forced repairs at its refineries, with Ryazan shut for more than half the time since its first attack in May and Tuapse offline since April, according to Bloomberg.
Bottom line — Rosneft operates 12 refineries, accounting for about a third of Russia’s refining capacity.
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Bloomberg reported that some Rosneft refineries have deliberately slowed repairs, extending work from days to weeks.
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According to Bloomberg, Ryazan has repeatedly come under attack as Rosneft tried to restore operations.
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Bloomberg’s analysis found Syzran was offline or running below one-third of capacity for most of the past six months.
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Rosneft officials told Bloomberg that repeated repairs are driving costs to unsustainable levels.
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Bloomberg reported that shipping containers, nets and steel cables used to protect facilities have proved ineffective against drone swarms.
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Bloomberg said repairs are particularly difficult when strikes damage complex processing units that previously relied on parts from Western manufacturers.