Russia’s Ryazan oil refinery, one of the country’s largest processing facilities, halted crude oil operations after a Ukrainian drone strike on July 29 forced the Rosneft-owned plant to suspend production. Industry sources told Reuters that the shutdown could last several weeks, further straining Russia’s already diminished refining capacity.
The Ryazan refinery processes approximately 285,000 barrels of crude per day, accounting for roughly 5% of Russia’s total refining output. The attack marks the second time this year that the facility has been forced offline by Ukrainian aerial strikes, highlighting the vulnerability of Russia’s energy infrastructure to sustained drone campaigns.
The shutdown compounds an acute domestic fuel crisis that has forced Moscow to impose sweeping export restrictions. On July 30, the Russian government signed decrees extending bans on gasoline and diesel exports through January 31, 2027, just days after Deputy Prime Minister Alexander Novak had signaled the diesel restrictions would be lifted once the market recovered.
The ripple effects are spreading across Central Asia. Kazakhstan, which has been in talks with Moscow to refine Russian crude oil at its own facilities, announced plans to extend its own gasoline export ban through May 2027. Russian citizens have been crossing into Kazakhstan to purchase cheaper fuel, prompting Astana to restrict cross-border vehicle entries to once per day to curb illegal fuel exports.
Ukraine’s systematic drone campaign has now disabled an estimated 43% of Russia’s projected oil refining capacity, according to Ukrainian defense officials. The attacks have targeted major facilities across the country, including the Omsk refinery, Russia’s largest, which also halted processing after a drone strike in July. The IEA had previously warned that drone hits would weigh on Russian refinery runs through at least mid-2026.
Russian wholesale gasoline prices have surged as a result, with retailers and traders reporting shortages at private filling stations. The government’s original gasoline export ban took effect April 1, initially set to last until July 31, but the persistent supply disruptions have forced repeated extensions. The ruble has also come under pressure as energy sector uncertainty mounts.
For global energy markets, the continued degradation of Russian refining capacity adds another layer of supply tightness at a time when the Iran war has already disrupted flows through the Strait of Hormuz. While Russia remains a major crude exporter, its reduced ability to process oil into finished products is tightening supplies of diesel and gasoline across Eurasia.
Sources: Reuters – Russia’s Ryazan Refinery Halts Processing After Drone Strike, Moscow Times – Kazakhstan in Talks to Refine Russian Crude, Moscow Times – Russia Extends Fuel Export Ban Through January 2027
Author: Finance Desk
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