Russia's NORSI refinery halted after drone attack, sources say

• The damaged CDU-5 unit accounts for roughly 25% of NORSI's total refining capacity; the plant can process 15 million tons of crude annually and produces about 5 million tons of gasoline per year
• Ukraine's drone campaign targets Russian energy infrastructure to weaken war funding, with this facility located 450 km (280 miles) east of Moscow in the Nizhny Novgorod region
• The St. Petersburg International Mercantile Exchange halted diesel and gasoline sales from NORSI starting Wednesday, though the refinery may use other units to restart operations soon

Russia's NORSI Refinery Halted After Ukrainian Drone Strike

Russia's NORSI oil refinery, the country's fourth-largest refinery and second-largest gasoline producer, suspended operations Wednesday following a Ukrainian drone attack, potentially exacerbating nationwide fuel shortages, according to industry sources.

Key Details:

The attack damaged the CDU-5 primary refining unit, which processes 12,000 metric tons daily—approximately 25% of the plant's total production capacity. The refinery is located near Kstovo in the Nizhny Novgorod region, roughly 450 kilometers (280 miles) east of Moscow. Two fatalities were reported by regional Governor Gleb Nikitin, attributed to falling drone debris.

Production Impact:

NORSI's total annual capacity includes:

• 15 million tons of crude oil processing
• 5 million tons of gasoline production
• 5 million tons of diesel
• 2 million tons of fuel oil
• 500,000 tons of bitumen

The St. Petersburg International Mercantile Exchange (SPIMEX) immediately halted diesel and gasoline sales from NORSI following the incident. Sources indicated the refinery may utilize alternative units to resume operations soon.

Market Context:

This attack is part of Ukraine's ongoing campaign of long-range drone strikes targeting Russian energy infrastructure, aimed at disrupting a critical war funding source. Owner Lukoil has not commented on the incident.

Implications:

The suspension threatens to worsen Russia's existing fuel supply challenges and could impact domestic gasoline and diesel availability. The extent and duration of the disruption remain unclear, though management is reportedly working to restore operations using remaining production units.