The largest oil refinery in southern Russia, the Volgograd refinery, has halted production at its diesel hydrotreating unit after a large-scale fire on 15 January. The Moscow Time reports, citing sources familiar with the situation.
What is known about the incident?
- The Lukoil-owned plant produces about 7% of all diesel fuel in Russia. In 2024, it processed 13.7 million tonnes of oil.
- As a result of the incident, the company lost half of its diesel production capacity, which is about 10,000 tonnes per day.
Contradictions in versions of the causes
Official sources claim that the fire was caused by an “emergency situation” without external intervention. However, local residents report that “something fell from the sky” at the plant before the explosion.
The Russian regime denies any external influence, but the fire has raised doubts among experts and locals who suspect a possible attack.
Implications for the market
The shutdown of part of the Volgograd refinery’s capacity could affect the supply of diesel fuel in Russia, which would complicate the situation for the country’s energy sector in times of war.
