INSUBCONTINENT EXCLUSIVE:
At least three Russian oil refineries could face closures next year as declining exports, high crude oil costs and soaring interest rates
lead to mounting financial losses, Reuters reported Friday, citing anonymous sources familiar with the matter.The Tuapse refinery, a large
Smaller independent refineries, Ilsky in Krasnodar and Novoshakhtinsky in Rostov, have been operating at half capacity for months due to
weak profit margins.The struggling refineries, which are said to have sought financial support from the government, were also targeted in
Ukrainian drone strikes this year
hit hardest as they lack the support of large parent companies and face higher borrowing costs amid rising interest rates
The Russian Central Bank hiked its key rate to a historic 21% last month and is expected to increase it further in December.The average
price of Russian crude oil surged to 50,000 rubles ($499) per ton in October as the ruble weakened, significantly above the break-even point
of 35,000 rubles ($349) per ton for independent refiners.Reuters said the Tuapse, Ilsky and Novoshakhtinsky refiners did not respond to a
medium-sized refineries process 5.5 million barrels of crude per day, with 2 million exported and the remainder consumed domestically
Smaller plants were not included in the report.
