Ukraine Drones Strike Second Lukoil Refinery in Russia This Week

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(Bloomberg) — Ukrainian drones hit another Russian refinery owned by Lukoil PJSC, as Kyiv’s attacks on its foe’s energy infrastructure resume after a lull last month.

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Fire crews are working to extinguish a blaze at an oil refinery in the city of Ukhta some 1,550 km (over 960 miles) from Moscow, following a Ukrainian drone attack, Komi region governor Rostislav Goldshtein said in a post on Telegram without giving further details. 

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Lukoil didn’t immediately respond to a Bloomberg request for comment. Ukrainian authorities have yet to comment on the Ukhta strike.

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Ukraine carried out multiple high-precision strikes on Russia’s energy assets last year, leading to refinery shutdowns, disruptions at oil terminals and the rerouting of some tankers. The attacks are designed to curb the Kremlin’s energy revenues and restrict fuel supplies to Russian front lines as the war is about to enter a fifth year. 

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The attacks slowed in January, targeting three small independent Russian refineries that together account for about 7% of the country’s typical monthly crude throughput.

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The lull offered temporary relief for Russia’s downstream sector, allowing refinery runs to gradually recover. As processing rates improved, the government lifted its ban on most gasoline exports, enabling producers to resume shipments in February, a month earlier than planned.

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On Wednesday, however, Ukraine attacked Lukoil’s oil refinery in Russia’s Volgograd region in the first major strike on the country’s oil-processing industry this year. The plant’s design capacity is about 300,000 barrels of crude a day. 

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The smaller Ukhta refinery has recently been processing just over 60,000 barrels per day. 

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