Łukoil cuts gasoline production. “The First Great Sacrifice of Sanctions”

According to “Kommersant”, the failure occurred on January 4, 2024. Damaged equipment is a compressor, which cannot be replaced in the future. The reason is that sanctions imposed by Western countries have limited the ability to purchase new equipment. However, Lukoil plans to repair the damaged equipment in the spring of this year.

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According to “Kommersant”, Lukoil “became the first major victim of Western sanctions in the oil industry.”

Refinery Nizhny Novgorod, where the failure occurred, 15 million tons of oil was processed in 2022. This represents 5 percent of the total oil production at the national level. Nevertheless, as “Kommersant” asserts, These plants are of major importance for the fuel supply of the Moscow region. The region accounts for approximately 30 percent of the country's gasoline consumption.

Recall: In December 2023, Lukoil received a heavy blow from Bulgaria. Bulgaria, dependent on Russian oil, has been given until the end of 2024 by the EU to cut raw materials from Russia, one of the main sources of funding for Vladimir Putin's war machine in Ukraine. The purpose of the EU sanctions – the titular omen – is to cut off this fuel from the Russian military.

As Bloomberg and AFP reported at the time, The Russian company has announced that it is considering selling the Neptohim refinery in Bulgaria On the Black Sea coast. And – let's emphasize – currently the largest in the Balkans.

“Due to a significant change in the operating conditions of Lukoil Group companies in Bulgaria, the company has begun work on reviewing its strategy regarding this asset. Various options will be considered, including selling the company“- said the company in a special report.