Lubricant production in post-Soviet states has grown over the past three years, driven by Western sanctions against Russia, the exit of international brands and a shift toward self-sufficiency. New domestic producers filled supply gaps and pursued exports, supported by state funding and foreign partnerships.
With Russia, their traditional northern partner, playing a central role but facing market stagnation and high borrowing costs, manufacturers in Central Asia and the Caucasus turned outward to sustain growth through localized production and exports to Russia and Asian markets.
In Turkmenistan, a 20,000 metric tons per year finished lubricant plant was commissioned in 2024 in eastern Lebap province. According to local media, the 25,000-square-meter facility produces oils for passenger cars, trucks, off-road vehicles, and agricultural machinery and forms part of a wider government-led industrial modernization strategy.
A separate project launched in the same period by open joint stock company Taze Senagat brought next-generation API SP motor oils to the domestic market. Located in the Gokdepe district of Ahal province, the facility uses base oils supplied by the Turkmenbashi refinery and additives sourced from global suppliers, including Infineum – a joint venture of ExxonMobil and Shell. Company officials said the product range will expand to serve automotive, industrial and agricultural sectors.
Uzbekistan’s Marakanda Petroleum began operations in 2022 at a new plant in Chinaz, southwest of Tashkent, with financial backing from Canadian and Uzbek investors.
In late 2024, British-Ukrainian joint venture Azmol-British Petrochemicals announced it had relocated toll blending operations to Marakanda’s site after losing control of its Berdyansk facility in Russian-occupied Ukraine. A Marakanda spokesperson confirmed to Lube Report that blending operations are ongoing under the agreement.
Meanwhile, state-owned oil company Sanoat has expanded output at its Fergana refinery, where its lubricants unit, SEG Motol, introduced three new passenger car engine oils: SEG Motol Hitech synthetic 5W-30, Litec 10W-40, and Lider semi-synthetic 10W-40. These are blended using European additive packages. An automated Italian filling line with annual capacity of over 10,000 tons was installed, and the site now includes a certified lab capable of measuring key quality indicators such as SAE viscosity, Noack volatility, and foaming.
In the South Caucasus, Armenia entered the lubricant market in 2022 with the opening of its first blending facility in Yerevan. Backed by Russia’s Vortexprom, the plant uses proprietary cold-flow mixing technology. The engineering firm handled commissioning and personnel training for the project, according to a news release.
In Azerbaijan, Technol and Aminol, two long-standing local producers, have already increased their output, while state oil company Socar signed a roadmap with Russia’s Tatneft to establish a joint blending venture. The new plant is expected to be built in Azerbaijan and aims to enhance regional supply and technological cooperation, Socar Rus CEO Rufat Mahmud told local media.
Closer to Russia, Belarus is also boosting domestic production. Under the presidential “One District – One Project” development initiative, a 5,000 t/y blending plant is scheduled to open in 2025, supported by 125 million Belarus rubles (U.S. $38 million) in investment. The site will manufacture lubricants, base oils and specialty fluids ,according to a media report.
Market segmentation, technical investment and regional cooperation will likely play a critical role in sustaining this growth amid a volatile geopolitical and economic landscape.