Armenia is set to launch bilateral trade with Azerbaijan, marking a major geopolitical shift in Transcaucasian commerce as Azerbaijan previously only exported petroleum products to the republic. Concurrently, Russia has downgraded its fuel standards to ease a severe domestic supply crisis.
Global market
A multinational consortium including Chevron, ONGC, GE Vernova, Eni, and GeoPark prepares to sign final energy agreements in Venezuela, giving foreign companies more operational flexibility. This comes as US President Donald Trump announced majority control over fields with 65 billion barrels of oil. In Europe, a critical fuel supply squeeze looms as half of the region’s seaborne diesel imports now come from the US, while European inventories sit at extremely low levels ahead of autumn refinery maintenance. Defying European Union environmental pressures, Norway’s Energy Minister Terje Aasland announced that Oslo will continue exploring for oil and gas in the Barents Sea, dismissing the ambition for Norway to become Europe’s “green battery.”
Russia & CIS
The Russian government has temporarily permitted the sale of Euro-2 and above petrol and diesel at gas stations until June 30, 2027, downgrading environmental standards to combat domestic shortages. This regulatory shift follows reports that petrol imports from Belarus have hit the capacity limits of Belarusian refineries, with sales on the Russian exchange plummeting fourfold in August. In infrastructure news, a tragic gas pipeline rupture during testing at the Kovykta gas condensate field in the Irkutsk region killed one worker and injured seven others. Additionally, from September 1, Russia introduces voluntary registration for over-the-counter oil product transactions of over one tonne, which will become mandatory in March 2027.
Armenia
Armenia will soon launch bilateral trade with Azerbaijan, announced Armenian Foreign Minister Ararat Mirzoyan. Historically, trade between the two neighbors was entirely one-sided, with Azerbaijan supplying petroleum products to Armenia. On the energy front, domestic retail prices for petrol, diesel, and natural gas in Armenia remained completely stable. The nation’s energy security continues to be anchored by its integration within the EAEU. Strategic bilateral treaties with Moscow guarantee the uninterrupted, duty-free import of Russian natural gas and petroleum products at long-term fixed rates, fully insulating local consumers from the price volatility recorded in international market price assessments.