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Russia's 4th-largest oil refinery shuts down after Ukrainian drone strike, Reuters reports

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Russia's 4th-largest oil refinery shuts down after Ukrainian drone strike, Reuters reports
The Lukoil-Nizhegorodnefteorgsintez oil refinery, operated by Lukoil, in Nizhny Novgorod, Russia, on Dec. 4, 2014. Photo for illustrative purposes. (Andrey Rudakov/Bloomberg via Getty Images)

The Lukoil-Nizhegorodorgsintez refinery, or NORSI plant, has halted operations after being damaged in a Ukrainian drone attack, Reuters reported on June 25, citing two industry sources.

The move is expected to inflame the growing fuel crisis in Russia, which has already led to export bans, price hikes, and sales restrictions across the country.

The Lukoil-Nizhegorodorgsintez refinery in Kstovo, Nizhny Novgorod Oblast, is Russia's fourth-largest oil refinery and second-largest producer of gasoline. The facility went offline on June 24 after a drone strike, two industry sources told Reuters.

According to Reuters' sources, the attack damaged a primary refining unit, CDU-5, at the facility. The unit accounts for around a quarter of the refinery's total production capacity, with a processing capacit of 12,000 metric tons per day.

NORSI may use other units to restart operations in the near future, the sources said.

The Saint-Petersburg International Mercantile Exchange (SPIMEX) halted sales of NORSI diesel and gasoline products beginning June 24. That same day, Nizhny Novgorod Oblast Governor Gleb Nikitin reported that an undisclosed industrial facility in the region had been damaged by falling drone debris.

Nikitin said the strike killed two people, but did not mention the refinery by name.

Ukraine launched multiple strikes against the NORSI refinery in May 2026. According to the General Staff, the Lukoil facility boasts an annual processing capacity of around 17 million tons of crude oil. The refinery also produces gasoline, diesel fuel, and aviation fuel "used to support the needs of the Russian occupation forces," the military said.

Following the May strikes, Nikitin signed a decree establishing a new ministry for drone defense in Nizhny Novgorod Oblast.

The suspension of operations at NORSI, one of Russia's largest refineries, comes amid industry reports that the Moscow Oil Refinery is unlikely to resume production before the end of the year. The facility was hit in back-to-back Ukrainian attacks in June, causing massive fires and widespread damage at the site.

As Ukrainian drones hammer Russia's refinery, pressure on the country's fuel market has continued to rise. Several regions have implemented sales restrictions on diesel and gasoline. The Kremlin is also considering adding an export ban on diesel to its temporary bans on jet fuel and gasoline.

Since the beginning of 2026, Ukraine has stepped up long-range drone strikes on Russian energy assets, including multiple strikes on facilities in and around Moscow. The campaign has focused on oil refineries and fuel depots, which are critical to sustaining Russia's war effort.

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Abbey Fenbert

Senior News Editor

Abbey Fenbert is a senior news editor at the Kyiv Independent. She is a freelance writer, editor, and playwright with an MFA from Boston University. Abbey served as a Peace Corps Volunteer in Ukraine from 2008-2011.

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