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Writer's pictureBy The Financial District
Apr 71 min read

U.S. Sanctions Hinder Russian Refinery Repairs, Exacerbate Energy Sector Woes

Russian oil firm Lukoil faces significant challenges repairing its largest refinery due to the withdrawal of a crucial American company, UOP, after Russia's invasion of Ukraine, Robert Harvey reported for Reuters.


Lukoil estimates nearly $100 million in monthly revenue losses from the refinery's outage. I Photo: LUKOIL Facebook



The absence of UOP, which specialized in repairing the refinery's catalytic cracker, has led to a production halt since January, affecting gasoline output.


The NORSI refinery, located in Russia's Nizhny Novgorod region, has slashed gasoline production by 40% due to the catalytic cracker's inoperability, impacting approximately 11% of Russia's total gasoline capacity.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

Lukoil estimates nearly $100 million in monthly revenue losses from the refinery's outage.


Compounding these issues are Ukrainian drone attacks on Russian refineries, which forced closures amounting to 14% of capacity in the first quarter of 2024. The combination of sanctions and attacks underscores the significant challenges faced by Russian oil firms in maintaining refinery operations.




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