Ukrainian military strikes challenge Russian oil refineries amid ammunition scarcity

The Russian oil industry is facing difficulties due to actions taken by the Ukrainian military. Several refineries are being targeted, causing significant financial losses. To date, attacks have impacted 13 oil refining companies.

"Slaviansk-ECO", situated in Slaviansk-on-Kuban within the Krasnodar Territory, is the latest oil refining company to be attacked by Ukrainian forces. According to defence-ua.com, this facility has a modest size, with an annual processing capacity of approximately 3-5 million tonnes of oil. In comparison, "LUKOIL-Nizhegorodnefteorgsintez", based in Kstovo in the Nizhny Novgorod region, processes around 15 million tonnes of oil yearly.

Despite their size, the targeted facilities have inflicted considerable losses on the Russians. In 2022, "Slaviansk-ECO" reported a revenue of £130 billion, or around £1.4 billion. The net profit for the refinery was estimated at about £104 million according to official figures. Since 2021, significant investments have been made into the facility – with a planned expenditure of £182 million for the 2021-2025 period. The highlight of this modernization effort was to be a new unit for producing high-octane petrol.

Unfortunately, these large investments now seem unlikely to generate expected returns as the refinery, located roughly 300 kilometres from the frontline, has been shut down due to successful attacks by Ukrainian forces.

However, as reported by the editorial team at wnp.pl, while the attacks on Russian oil refineries have concluded successfully, they also present challenges for Ukrainians. Targeting the Russian energy sector requires significant amounts of ammunition, now in short supply in Ukraine. It is reported that Russia produces three times more ammunition than the USA and Europe combined, highlighting the disparity in resource availability for Ukraine’s defense efforts.

According to WNP, quoting the German newspaper Der Spiegel, Ukrainian commanders have acknowledged that due to an overall shortage of ammunition, most units are compelled to conserve ammo and equipment. Soldiers are currently only capable of holding their positions, provided that Russian forces do not escalate their offences. Delays in equipment and ammunition supply could potentially render Ukraine's front line more vulnerable, as indicated by reports from the American Institute for the Study of War.