Russia’s oil giant Rosneft fears just a few more months of war in Ukraine could inflict lasting damage on its business, Bloomberg reports

Russia's oil giant Rosneft fears lasting damage from Ukraine war

The full report

According to Bloomberg, Rosneft officials are concerned that even a few more months of the war in Ukraine could cause lasting damage to the company’s business.

The company’s finances are deteriorating as profits fall and debt rises, despite expectations that the war in the Middle East would boost its earnings.

Rosneft has suffered significant damage from Ukrainian strikes on its oil refineries, with five of the 15 confirmed drone strikes in September targeting Rosneft facilities that supply fuel to European Russia.

The Ryazan refinery, which has repeatedly come under attack, is among the hardest hit, while the Syzran refinery has spent most of the past six months either shut down completely or operating at less than a third of capacity.

The Tuapse refinery has been shut down since April, and Bloomberg reported that Rosneft managed to restart some refineries within weeks of an attack, only for them to be struck again once repairs were complete or nearly complete.

The constant need for repairs is driving costs to levels that cannot be sustained in the long run, with some plants deliberately slowing repairs, stretching work that would normally take a few days into weeks.