OIL & GAS
Lukoil Group is absolute volume leader in terms of base oil production capacity and quality, says the OATS analysts' report published on Lube Magazine.
Rosneft occupies second place after acquiring Bashneft in 2016, while Gazpromneft operates one own-brand refinery located in Omsk, sharing Rosneft’s Yaroslavl refinery for Group III production.
The Russian market for Group II is relatively small, mainly due to lack of regional supply and the penetration of Group III for high-performance lubricants.OATS
Analysts note that total demand for finished lubes in Russia is estimated at 1.6m tonnes, with industrial lubricants accounting for 45%, CV lubes taking 36% and passenger car oils accountable for 19% of the total market. About 60 locally produced and imported lube brands are marketed in Russia.
Key lube producers are mainly subsidiaries of Russian oil majors: Lukoil-Lubricants, Gazpromneft-Lubricants and Rosneft-Lubricants. Global brands with local blending operations — Shell, Fuchs and Total — take most of the remaining share.OATS
Russian imports of automotive and industrial lubricants have remained relatively stable since 2016, showing slight recent growth at 270k tonnes annually.
Because of the ageing vehicle parc, whilst 0W-X products are gaining ground, it is the 5W-X lubricants that are currently generating the strongest demand.OATS
Lubricants are generally sold via traditional channels: dealerships, aftermarket workshops, and retail outlets, although internet sales are showing steady growth.