Rosneft believes that several more months of war will cause long-term damage to the company

Rosneft believes that even several more months of war will cause long-term damage to the company

Representatives of Rosneft fear that even several more months of the war with Ukraine could inflict long-term damage on the company’s business. Bloomberg reports, citing sources.

According to the publication’s sources, Rosneft’s financial position is deteriorating: profits are falling while debt is rising—contrary to expectations that the war in the Middle East would bring the company revenue.

Rosneft has sustained significant damage from Ukraine’s strikes on oil refineries. The company operates 12 refineries, which account for about one-third of all oil-processing capacity in Russia. Bloomberg calculates that, of 15 confirmed drone strikes on Russian refineries in September alone, five targeted Rosneft facilities supplying fuel to the European part of Russia.

One of the hardest-hit plants is the Ryazan Refinery, which has repeatedly come under attack. The Syzran Refinery has spent most of the past six months either completely shut down or operating at less than one-third of its capacity. The Tuapse Refinery has not operated since April.

Bloomberg notes that Rosneft managed to restart some refineries within several weeks after an attack, but they were then hit again after repairs had been completed or were nearing completion. According to the publication’s sources, the need for constant repair work is driving costs up to a level that cannot be sustained in the long term. As a result, some plants deliberately slowed repair work—from several days to several weeks, Bloomberg’s sources claim.

@meduzalive