Published by Global Banking & Finance Review®
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
The Volgograd oil refinery in Russia halted operations after a Ukrainian drone attack damaged key units, marking a significant event in the ongoing energy conflict.
LONDON (Reuters) -Russian oil major Lukoil's Volgograd refinery has halted operations after it was struck by Ukrainian drones, three sources familiar with the matter said on Thursday.
Ukraine has for several months been striking Russian oil refineries, depots and pipelines, while Ukrainian energy infrastructure has also been the target of Russian strikes in a war that is approaching its fourth year.
They said that the primary processing unit, CDU-5, with a daily capacity of 9,100 metric tons, or 66,700 barrels per day - a fifth of the plant's total capability - and a hydrocracker with a capacity of 11,000 tons per day were damaged during the attack.
Lukoil did not respond to a request for comment.
"The plant has been stopped. CDU-5 was on fire, there is some damage to the hydrocracker," one of the sources, who spoke on condition of anonymity, said.
In 2024 the Volgograd refinery processed 13.7 million metric tons of oil, or 5.1% of the total volume at Russian refineries.
Ukraine struck Russia with at least 75 drones on Thursday, sparking a fire in an industrial area of the southern city of Volgograd, killing at least one and halting dozens of flights across the country, Russian officials said.
Volgograd Governor Andrei Bocharov said a 48-year-old man was killed by shrapnel and that a fire was sparked in an industrial zone in the Krasnoarmeysk district of the city, which was formerly known as Stalingrad.
The district is home to the Volgograd refinery which has been repeatedly targeted by Ukraine.
(Reporting by Reuters; editing by Guy Faulconbridge)
An oil refinery is an industrial facility where crude oil is processed and transformed into useful products like gasoline, diesel, and other petrochemicals.
A drone attack involves the use of unmanned aerial vehicles (UAVs) to carry out strikes on targets, often used in military operations.
A hydrocracker is a type of refinery unit that uses hydrogen to convert heavy hydrocarbons into lighter, more valuable products like gasoline and diesel.
Oil production capacity refers to the maximum amount of oil that can be processed by a refinery, which directly impacts the supply and pricing of petroleum products.
International sanctions are penalties imposed by countries or international organizations to influence or punish a nation, often affecting trade and economic activities.
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