Russian Naphtha Exports Decline Amidst Refinery Disruptions and Sanctions
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Russia’s naphtha exports are experiencing a significant downturn, impacted by a combination of refinery maintenance following drone attacks and the imposition of US sanctions. the disruptions are affecting key Asian markets, leading to reduced import volumes and potential supply chain adjustments.
Refinery Shutdowns and Port Repairs
Typically, Russia exports between 1.4 million and 1.5 million tonnes of naphtha each month. Though, recent closures of the Tuapse refinery and disruptions at the Taman port for repairs are causing a substantial decrease in export volumes. Thes facilities sustained damage from repeated Ukrainian drone attacks, necessitating extensive maintenance work.
The tuapse refinery, responsible for exporting approximately 150,000 to 200,000 tonnes of naphtha monthly, ceased processing on December 31st. Restoration to normal production levels is expected to take at least another month, according to industry sources.
Falling Asian Demand
Preliminary shipping data indicates a sharp decline in naphtha exports to Asia. Russian naphtha exports to Asia are estimated to have fallen to around 600,000 tonnes in January, a decrease from approximately 800,000 tonnes in December. Further declines are anticipated in January and February, with projected imports ranging from 700,000 to 800,000 tonnes.
This represents a roughly 30 percent reduction compared to the average monthly import volume of one million to 1.2 million tonnes observed during the first ten months of 2025.
Impact of US Sanctions
The decline in exports is also linked to US sanctions imposed on Russian producers Rosneft and Lukoil. Taiwan and India, both major importers of Russian naphtha, significantly reduced their purchases in December following the implementation of these sanctions. This demonstrates the impact of geopolitical factors on global energy trade flows.
The combined effect of refinery disruptions and sanctions is creating a tighter naphtha market in Asia, potentially leading to price volatility and prompting buyers to seek alternative sources of supply.