Rosneft warns prolonged Ukraine war could cause lasting damage to its refineries
Rosneft officials say that extending the Ukraine conflict by a few months could permanently harm the company as repeated drone strikes on its refineries erode profits and raise debt.
Rosneft executives caution that even a few more months of the Ukraine war could inflict permanent damage on the oil giant’s operations. The company’s financial health is deteriorating, with falling profits and rising debt, contrary to expectations that Middle-East conflict would lift earnings. Ukrainian drone attacks have struck at least five of Rosneft’s 12 refineries in September, targeting assets that supply fuel to European Russia.
The Ryazan refinery has suffered repeated hits, while the Syzran plant has run at under a third of capacity for six months and the Tuapse refinery has remained shut since April. Although Rosneft can sometimes restart a damaged plant within weeks, subsequent strikes force costly repairs, prompting some sites to intentionally prolong maintenance. These dynamics risk unsustainable cost increases and long-term harm to the company’s business.
Why it matters
Continued attacks on Rosneft’s refineries could weaken Russia’s oil output and affect global energy markets.
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