Russian Aviation Sector Deals With Economic Fallout

摘要

Production of jet fuel in Russia dropped 10.5% last year to 9.72 million metric tons and could remain under pressure this year as lower export duties make it more profitable to export crude and products than domestic processing and persistent economic woes plague the refining sector. Rosneft, the country’s largest refiner, saw its jet fuel output drop 13.5% to 2.56 million tons. Gazprom Neft, the petroleum arm of natural gas leader Gazprom, surpassed Lukoil to become Russia’s second-largest producer of jet fuel as its output held steady for the year at 2.33 million tons while Lukoil’s sank 14% to 2.22 million tons. Gazprom Neft’s production trends diverged at its two refineries: at Omsk, Russia’s largest producer of jet fuel, output fell 1.1% to 1.68 million tons, while the Moscow facility posted a 2.2% increase. Reduced domestic demand freed up more jet fuel for export, with Russia becoming Europe’s sixth-largest supplier in the first nine months of 2015, according to International Energy Agency data (JFI Dec.21’15). Air traffic volume reflected Russia’s flagging economic output,