Russian President Vladimir Putin urged Armenian Prime Minister Nikol Pashinyan to clarify Armenia’s integration future between the European Union and the Eurasian Economic Union. This geopolitical ultimatum comes as global energy markets face surging prices, with Brent crude hitting multi-month highs and Asian LNG spot prices peaking.
Global market
Brent crude oil futures surged over 4.1% to exceed $94 per barrel for the first time since August 21 as Strait of Hormuz disruptions escalated. This maritime supply bottleneck drove Asian spot LNG prices to a five-month high of $24.614 per MMBtu as regional buyers competed for cargoes. To bypass Western restrictions, Russia doubled its dark fleet of LNG carriers to 20 vessels in just nine months, enabling year-round shipments from its sanctioned Arctic LNG 2 project to Asia. In the UK, soaring energy and commodity costs pushed shop price inflation to a two-year high of 1.5% in August, squeezing retail margins ahead of the winter heating season.
Russia & CIS
Russia’s seaborne gasoline imports rose to a record high of 125,000 barrels per day in August to offset domestic shortages caused by drone strikes on refineries. To maintain stability, Moscow extended its full gasoline export ban through January 2027. Meanwhile, Kazakhstan opened a pre-trial criminal investigation into fire safety violations after a major blaze at one of its largest refineries. In the nuclear sector, Rosatom’s CEO Alexey Likhachev announced plans for a new shipyard near Murmansk to build floating power units, while Russian President Vladimir Putin confirmed that Turkey’s Akkuyu nuclear power plant is on track for launch.
Armenia
Russian President Vladimir Putin urged Armenian Prime Minister Nikol Pashinyan to quickly decide on Armenia’s economic future with either the EU or EAEU. Pointing out that Armenia’s GDP has tripled during its EAEU membership, the Russian leader clarified the criteria that Moscow would consider an official “notice of withdrawal” from the bloc. This political pressure highlights Yerevan’s reliance on the union for its energy security. Strategic EAEU treaties with Moscow secure uninterrupted, duty-free imports of Russian natural gas and petroleum products at fixed rates, shielding Armenian consumers from volatile price spikes recorded in international market price assessments.