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Market Chatter: Russia's Ilsky Refinery on Fire After Overnight Ukrainian Drone Strikes

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Russia's Ilsky oil refinery, located in the Southern Krasnodar region, was reportedly on fire after being struck by a Ukrainian drone on the night of Monday to Tuesday, according to Ukraine conflict-focused Telegram channel NoelReports.

This was the latest of a series of Ukrainian attacks on Russia's energy infrastructure in recent weeks, as Kyiv seeks to restrict Russian energy export revenues that are helping fund a four-year long invasion of Ukraine, all the more so amid high prices.

The Ilsky refinery is one of the largest private oil processing facilities in Russia, with a total capacity of 138,000 barrels of oil per day, or 6.6 million metric tons of crude oil per year.

Located in Russia's Southern Federal District, the refinery is a major export complex. Russia is also dealing with domestic fuel shortages due to a string of drone strikes over the past couple of weeks, which have taken major infrastructure offline.

The Ilsky Oil Refinery did not immediately respond to' request for a comment on this story.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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