Ukrainian attacks on Russian oil refineries deplete reserves, raise concerns

The Russian oil industry is currently facing significant challenges because of the actions of the Ukrainian military. Several refineries have caught fire, leading to substantial losses. To date, attacks have impacted 13 oil refining companies.

Slaviansk-ECO, located in Slaviansk-on-Kuban within the Krasnodar Territory, has become the 13th oil refining company to be targeted by Ukrainian forces. According to the defense-ua.com service, this facility, while not the largest, has an annual processing capacity of around 3-5 million tons of oil. In contrast, LUKOIL-Nizhegorodnefteorgsintez in Kstovo in the Nizhny Novgorod region processes 15 million tons of oil annually.

Despite the size of these facilities, the attacks are causing significant financial damages to the Russians. In 2022, Slaviansk-ECO generated revenue of 162 billion rubles, equivalent to about 1.75 billion dollars, with a net profit of approximately 130 million dollars, as per official figures. Since 2021, substantial investments have been made into the facility. The 2021-2025 plan included an expenditure of 227 million dollars, with a major project being the construction of a new unit for producing high-octane gasoline.

However, these large investments are unlikely to yield any profits soon as the refinery, located about 186 miles from the frontline, has been halted due to successful Ukrainian assaults.

Yet, these successful strikes on Russian oil refineries come with their own set of challenges for the Ukrainians. According to the editorial office of wnp.pl, the attacks on Russia's energy infrastructure are consuming vast amounts of ammunition, depleting Ukraine’s reserves. It is reported that Russia produces three times more ammunition than the USA and Europe combined, highlighting a significant supply disparity. Consequently, Ukraine's willingness to engage is curtailed by these limitations.

Drawing from wnp.pl and referencing the German newspaper Der Spiegel, Ukrainian commanders have acknowledged that many units are now forced to economize their ammunition and equipment due to a general shortage. Soldiers can only hold their current positions as long as Russian forces don't launch full-scale attacks. The delays in receiving new equipment and ammunition could potentially weaken Ukraine's defensive line, as indicated by a report from the American Institute for the Study of War.