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Ukrainian oil refining and fuel storage infrastructure hit by Russian attacks

Highlights

Operations halt at Kremenchuk refinery

Russia says Odesa oil refinery, fuel storage destroyed in missile strike

Follows damage to Russian oil depot April 1

  • Author
  • Rosemary Griffin
  • Editor
  • Andy Critchlow
  • Commodity
  • Natural Gas Oil

Oil refineries and fuel storage sites have been destroyed in Ukraine in recent days, officials confirmed April 3, signaling an increased targeting of energy infrastructure in the conflict.

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"This morning, high-precision sea and air missiles destroyed an oil refinery and three storage facilities for fuel and lubricants near the city of Odesa, from which fuel was supplied to a group of Ukrainian troops in the direction of Mykolaiv," Defence Ministry spokesperson Major General Igor Konashenkov said April 3 in a briefing shown on the ministry's telegram channel.

The destruction of the Odessa refinery comes after Ukraine confirmed the Kremenchuk refinery was no longer operational after coming under heavy fire, Poltava regional governor Dmytro Lunin said April 2, in a post on his telegram channel.

The UkrTatNafta plant in Kremenchuk with a processing capacity of about 12 million mt/year of crude, was refining domestically extracted oil due to the closure of ports and the suspension of oil imports.

Ukraine's second largest diesel and gasoline plant Shebelinka GPP has remained largely offline since Feb. 26, due to the threat of shelling, operator Naftogaz said previously.

Russia's invasion of Ukraine Feb. 24 has caused major security risks to energy production and supply infrastructure in Ukraine and Russia. Oil embargos and financial sanctions restricting purchase of Russian energy are further compounding these supply risks.

Ukraine relies on imports of gasoline, diesel fuel and LPG to meet domestic demand, and is facing shortages of motor fuel throughout the country.

The country has started importing diesel and gasoline from Lithuania, bypassing Belarus, which is helping Russia in its invasion, industry sources said.

On April 1 the Russia's Belgorod regional governor Vyacheslav Gladkov said that a fire at an oil depot in the city, which is close to the Ukrainian border, was the result of an air strike by two Ukrainian military helicopters.