Assessment of the results of modernisation and prospects for the development of the Russian oil refining in the context of sanction restrictions

Abstract

The implementation of the programme for modernisation of Russian oil refineries, launched in 2011, has already significantly increased the depth of oil refining and the quality of petroleum products. It has had a positive effect on reducing the country’s dependence on crude oil exports and has made it possible to obtain a significant positive environmental effect. However, at the same time, there has been a decrease in marginality. At the present stage, the main problems of the Russian oil refining, which affect, among other things, the implementation of modernisation projects, are associated with a ban on the supply of equipment and software for oil refining, the imposition of an embargo and a price ceiling for oil products. The article analyses the results of the implementation of the modernisation programme in terms of the impact on economic and environmental performance of oil refineries and the impact of sanction restrictions on the further modernisation of enterprises. It also considers possible ways to solve problems through the development and implementation of modern production technologies in combination with digital solutions.

Keywords

• depth of oil refining
• oil refineries
• embargo on oil and oil products
• price ceiling
• damper
• modernisation
• import substitution
• petrochemical production
• oil and gas chemistry