Russia's oil refining capacity drops to lowest since 2002

Russia's oil refining industry continues to shrink, with the latest data from EA Analytics showing capacity has fallen to its lowest level since 2002. That is an even weaker result than the company reported earlier, when it said average refining capacity in early July stood at 3.91 million barrels per day — the lowest figure since March 2005. The new numbers indicate that the decline has not only continued but accelerated.

Bloomberg estimates that Russia's oil infrastructure suffered at least 30 Ukrainian attacks in July. If another eight attacks on tankers in the Black Sea — for which Ukraine has not accepted responsibility — were added to that count, July would have seen a record number of strikes on Russian-owned oil facilities.

These attacks have worsened a fuel crisis that began in May in annexed Crimea and gradually spread across Russia. In June and July, nearly all Russian regions brought in restrictions on fuel sales.

On Monday, Mongolia also announced restrictions on fuel sales. The country imports 95% of its oil products from Russia, making it directly exposed to the supply problems caused by the disruption of Russian refining.