Its not that the owners of these plants, which date to the days of the Soviet Union, were necessarily incapable of making quality base stocks. In fact, the spectrum of oils produced in Russia and other Commonwealth of Independent State member countries was created with particular purpose – to cover the simple requirements of basic lubrication in domestically constructed machinery and automotive internal combustion engines.

For several decades, many vehicles and other machines used in Russia had less demanding lubrication requirements than their counterparts in the West or Japan. In addition, Russian lubricant formulators made clever use of additive packages and used a wider range of base oil viscosities so that their finished products depended less on base stock performance. As a result, these base stocks were adequate for the companies producing them and their domestic customers.

One peculiarity about Russian base oil refiners is that they did not produce bright stock – a very heavy cut made by most of the worlds API Group I plants. But the lack of bright stock was not a drawback in Russia. By producing high-vis solvent extraction base stocks such as SAE 50, blends were concocted to take account of high wear in applications such as marine cylinder oils and heavy duty automotive applications.

A few decades ago, some Western European blenders were progressive enough to look outside the frame when sourcing base oils for particular end uses. Eastern European and Soviet Union base oils were imported into areas such as Germany, Belgium, the Netherlands and the United Kingdom, providing lower cost, alternative base stocks which could be utilized in certain applications. So successful were these enterprises that other mainstream blending operations took up the hammer and sickle and started using Soviet base oils within their own lubricant slate.

Upon the breakup of the Soviet Union, base oil production expanded at existing refineries in locations such as Ukraine, Turkmenistan, Uzbekistan and Belarus, in addition to the Russian refineries manufacturing Group I grades. An efficient rail system helped surplus base oils find their way to ports, predominantly on the Baltic and Black seas.

The expansion of exports was lucrative for the producers as a generator of foreign currency and also served as a proving ground for the quality of oils coming from different locations within Russia. Standardization has always been a prominent feature of Russian production, but there are still variations with almost all characteristics. Oils from some plants are particularly highly specified, while others are very basic, with low viscosity index and dark color.

The purchasing of Russian base oils is more complex than most market players realize. Output from a refinery always starts at an auction where domestic traders bid in rubles. The base oils are then resold in foreign currency to international trading houses, some of which are based in load ports on the Baltic or Black seas. Often these organizations are one and the same entity, trading inside and outside Russian territory under separate labels.

Transportation of base oils from refinery to shore tank is always by train, although local deliveries are organized by truck and in some cases by river vessel. This efficient system means that oils being produced say, in Uzbekistan, can be made available through distant ports, and base stocks coming out of refineries in the central and eastern part of Russia, for example from Omsk and Angarsk, are able to be exported via ports on the Black or Baltic. Rail transportation has also been used for exports to neighboring nations such as China, Poland and the Czech Republic.

With more modern industrial machinery and vehicles replacing many older units in Russia, base oil production in this region is undergoing a sea-change at this time. Many refineries have already begun planning Group II, Group III and Group IV upgrades that will help this region make base oils needed for a new generation of finished lubricants.

Facilities such as Lukoils plant in Perm and Rosneft plants in Kuibyshev (formerly Samara) and Angarsk are planning large units for the production of Group II grades, while Group III material will be made available from a Slavneft plant in Yaroslavl and Lukoils Volgograd facility. Niznekhamsk Neftekhim aims to add Group

III capacity to its existing polyalphaolefin (Group IV) plant in Nizhnekamsk. What is not clear at this time is how much Group I availability will be cut back once the upgrading and modernization takes place.

While most of this new production is designed to augment the local market, it is envisioned by many that a lot of this production will be ear-marked for export sales to countries in Eastern Europe, the Middle East and the Far East. Whether these sales will be accomplished in the same way that Group I sales are currently conducted remains to be seen. Most of the companies planning new production already have a presence and operational reputation outside of Russia. These operators may elect to export under their own banner rather than use the auction/trader system for sales at the refinery gate.

Whatever the methodology, Russia is destined to move with the times so that domestic companies eventually may blend finished lubricants of the highest standards. At the same time, Russia will be competing with Western and Far Eastern base oil producers to give the country technological advantages for the 21st century. And they will do so still without producing or using bright stock!