23 Mar 2022 15:13

Russia can substitute refinery technologies subject to sanctions, but this will impact cost and timeframe - Novak

MOSCOW. March 23 (Interfax) - Russia can substitute oil refining technologies that have been subject to sanctions, but this will affect costs and timelines, according to answers given by Deputy Prime Minister Alexander Novak to questions from State Duma deputies which were seen by Interfax.

"The list of specific technologies and equipment that will fall under the new sanctions and the conditions of their application are not yet completely clear. It is still premature to make estimates. The Government of the Russian Federation will organize monitoring of fulfillment by foreign companies of earlier agreements on delivery of contracted equipment. At the same time it can be said that the bulk of the equipment used for primary oil refining is Russian. At the majority of the secondary oil processing units where imported equipment is currently used there are options developed for substitution with Russian analogues or purchases from friendly countries. In terms of operational readiness, no technological sanctions will prevent Russian refineries from meeting the needs of domestic consumers for petroleum products in full and in proper quality," the materials indicate.

"However, the current unfavorable macroeconomic situation caused by the actions of Western countries may affect the cost and timing of the refinery modernization program. If necessary, the Russian government intends to initiate additional state support for Russian oil refineries implementing investment projects," Novak said.