Julianne Geiger reports on Russia's refining crisis as Ukraine's systematic attacks drive crude processing to a 21-year low.
Julianne Geiger reports that Ukraine has systematically dismantled Russia’s refining system, pushing crude processing to its lowest level since March 2005. By targeting at least 24 of Russia’s 34 large refineries, Ukraine has forced Moscow to ban exports of gasoline, jet fuel, and diesel. The July 6 strike on the Omsk refinery, Russia’s largest facility, removed the last geographic sanctuary within the country's refining system. The heavy losses have caused extreme distress for Moscow, as simultaneous strikes removed the ability to redirect products from other regions. Consequently, Russia has begun importing finished fuel from countries like India and Belarus to meet domestic demand. The diesel export ban, imposed on July 8, has caused European diesel refining margins to reach record levels. While Russia may increase crude oil exports to compensate, the country's position as a reliable diesel supplier remains uncertain as global buyers adapt to the disrupted supply chain.