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Ukraine refinery strikes push Russia to process crude in Kazakhstan
Moscow has agreed to send most processed fuel back to Russia, but external refining is unlikely to materially ease the country’s gasoline and diesel shortages, experts say.
As Ukraine targets Russia’s refineries amid worsening fuel shortages, Moscow is turning to processing its crude abroad, OilPrice reports. The outlet says Kyiv’s drone strikes have knocked out dozens of refineries in recent months, aimed at disrupting Russia’s ability to sustain its four-year war.
OilPrice reports that Russia has already halted exports and introduced rationing measures, as it tries to manage the crisis. The latest step involves a deal with a small private refinery in Kazakhstan to process Russian crude.
According to OilPrice, Kazakhstan’s Energy Minister Yerlan Akkenzhenov said on August 25 that the Kondensat refinery in western Kazakhstan will process Russian crude, with around 70 percent being sent back to Russia. The outlet also cites an estimate that Russia consumes up to 120,000 metric tons of gasoline per day in summer months, while the Kondensat refinery can produce up to 200,000 metric tons of gasoline per year, meeting about 0.3 percent of daily demand.
OilPrice adds that experts expect the arrangement will not solve Russia’s severe shortages, pointing to Russia’s counterstrikes on Ukraine’s energy facilities.
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