Russia’s domestic grease market is still lucrative despite sanctions and escalating raw materials costs, according an industry insider. Demand is being driven by the military and its three-year occupation of neighboring Ukraine.
A growing share of lithium- and calcium-based greases now goes to defense applications, where compliance with Soviet-era specification standards remains critical.
“Companies like Intesmo and other grease producers are now heavily focused on military-grade lubricants that meet GOST standards,” an industry inside source told Lube Report on condition of anonymity, citing fear of prosecution by Russian authorities. “It’s a goldmine for them at the moment.”
Intesmo, Russia’s largest grease producer, is a joint venture between LLK International and state-owned Russian Railways. GOST, the country’s technical standards system, frequently revises specifications originally developed for Soviet-era equipment, including military hardware now deployed in the war effort in Ukraine.
The source described how producers continue to acquire components for military and industrial greases through a web of sanction-evading routes.
“Ultra-heavy base stocks from Iran go to Russia for use in special high-viscosity products, mainly for military and railway applications,” the source said. “High-value additives reach Russia via Kazakhstan and Kyrgyzstan. Special lubricants and components still arrive at the Sakhalin gas project through sanction waivers, and when it comes to ‘economic considerations,’ South Korean as well many Western companies are also involved. All of these are sanctioned goods, but they’re still getting through.”
Many other components also arrive via China and the United Arab Emirates, transiting through Turkey, Georgia and Southeast Asian countries.
Lithium-thickened greases have held a dominant position in the Russian market for the past 25 years, accounting for about 60% of total grease consumption. As of early 2024, Russia’s grease production stood at approximately 40,000 metric tons annually — roughly 3% of global output, according to industry estimates.
A recent study by B2X, a Moscow-based consultancy, found that sales of simple lithium and calcium greases grew by 56% between 2019 and 2023. At the same time, demand for complex lithium and calcium greases declined due to rising raw materials prices.
“This price spike has prompted many Russian producers and end-users to switch to simpler and more cost-effective lithium-calcium formulations,” B2X said. Military, freight, agriculture and railway sectors remain key consumers due to affordability of these products and compatibility with legacy equipment.
Russian-standard lithium grease products such as Litol (grease for various mechanisms and assemblies operating under high loads and temperatures), Buksol (axle box bearings grease) and CV (constant velocity joint grease) are still widely used, though B2X reported that their market share has declined in recent years under the dual pressures of cost inflation and evolving technical requirements.
Meanwhile, surging global demand for lithium — particularly from electric vehicle battery and ceramics manufacturers — continues to strain availability for grease production. Greases are now the third-largest consumers of lithium globally, after batteries and ceramics.
In response, Russian producers are expanding domestic capacity and relying more heavily on informal or third-country trade networks to source key additives and raw materials.