The government is trying to support squeezed refiners through tax refunds
Russian reforms drive refining change
Tax changes to incentivise refinery upgraders are bearing fruit
The Russian government’s policy of offering subsidies to refiners willing to spend big sums on upgrades is translating into investment decisions. And simpler facilities may finally be forced to face market realities and closure. The country’s refining industry was initially geared to churn out a lot of fuel oil. But fiscal incentives over a number of years have aimed to encourage output of higher value products for both domestic and export markets. And this has largely been effective, with major refineries producing lighter fuels for consumption both in Russia and abroad. 8.8mn t/yr – New Russian cracking capacity in 2021 “Over the past ten years the Russian refining sector has gone
Also in this section
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
