Shares Of Russia's Largest Oil Companies Fell To 3-year Lows
- 16.06.2026, 18:23
The attacks on the oil refinery “helped.”
The Moscow Exchange’s “Oil and Gas” Index, which includes shares of the 11 largest oil and gas companies, fell to its lowest level since March 2023 during Tuesday’s trading session — 6,081 points, according to exchange data, as reported by The Moscow Times.
Despite oil prices soaring due to the war in Iran, the index has closed lower in 10 of the last 12 weeks, losing 25% over the past three months and 15% year-to-date.
The Russian oil sector, which remains the main source of export revenue for the economy, is under pressure from the strong ruble, unfulfilled hopes for the lifting of sanctions, as well as attacks on refineries and fuel shortages at gas stations, according to analysts at Vector Capital. Last year, drone attacks on oil refineries cost the oil sector about 1 trillion rubles in losses. This year, the number of such attacks has risen to a record high—38 between January and May.
Rosneft shares fell 5.3% during Tuesday’s trading session and have dropped 15% since the start of the year, hitting a new low since February 2023—339.6 rubles per share. Last year, the company’s net profit fell by a factor of four, and in the first quarter of this year, it fell by one-third. “Rosneft will have to set aside reserves due to attacks on production facilities—refineries, storage terminals, and pumping stations,” warned company CEO Igor Sechin on June 1.
Lukoil shares fell 5.8% on Tuesday and 14% since the start of the year, hitting a low not seen since May 2023—4,485 rubles. Common shares of Surgutneftegaz, which last month was forced to shut down the largest refinery, “Kinef,” near St. Petersburg, hit a low not seen since October 2022—18.055 rubles— having lost 17% since the start of the year. Tatneft’s shares plummeted by nearly 7% in a single day; the company’s main refinery in Nizhnekamsk had been shut down the day before.
“Attacks by Ukrainian drones are inflicting significant costs on the Russian oil sector: they disrupt refinery operations, reduce refining capacity, increase repair and security costs, and create bottlenecks in logistics,” — notes CREA analyst Isaac Levi. According to Energy Intelligence estimates, in early June, oil refining volumes in Russia fell to a 21-year low—one-third of refinery capacity was idle, or more than 2 million barrels per day.
The agreement between the U.S. and Iran, which promises to end the blockade of the Strait of Hormuz, is also putting pressure on oil company stocks, notes BCS analyst Kirill Bakhtin. Over the past two days, the price of Brent crude has fallen by nearly 10% and is trading below $80 per barrel for the first time since March. “The period of high oil prices has likely come to an end,” Bakhtin warns.