Issues of Modernization of Oil Refining Industry in Russia under Sanction Pressure

Abstract

Given that oil industry is the basis of fuel and energy complex and has a huge impact on economy of the whole country, it is highly relevant to find ways of stable operation and development of oil-refining industry. It is also necessary to seek ways and means of counteracting unprecedented sanctions imposed by the EU, USA and their satellite states. With no clear state strategy to modernize capacity of oil refinery and affected by such factors as transition to producing ecologically pure fuel, consequences of COVID-19, lack of modern technologies, the industry is undergoing serious development issues. Sanction challenges of national oil-refining industry were defined. The scope of oil refining, structure of the industry, specifics of large refineries owned by Russian vertically integrated companies, and that of mini-refineries were analyzed. Their production capacity and machinery lifespan were studied. The depth of oil refining was analyzed; the level of complexity of technologies used by oil refineries based on the Nelson index was assessed. The cycles of development of the Russian oil refining in the post-Soviet period, process of modernization of refineries, mechanisms and results of modernization were looked into. The degree of dependence of the Russian oil refining industry on import of technologies, equipment, catalysts and software was determined. Possibilities of import substitution in the Russian oil refining industry were assessed.