The White House-backed takeover of a fifth of Venezuela’s oil reserves by a US private firm has escalated tensions with Beijing over billions of dollars in unpaid debt. Meanwhile, China and Russia expanded their energy alliance to over 50 billion dollars as Moscow’s refineries face ongoing drone strikes.
Global market
The US-supported North American Blue Energy Partners, led by Venezuelan businessman Alejandro Betancourt, has assumed control of 17 Venezuelan oil fields containing 65 billion barrels of reserves. This move directly threatens Beijing’s ability to recover at least 10 billion dollars of outstanding oil-backed loans, part of over 100 billion dollars in total commitments. Simultaneously, US President Donald Trump met with Chevron and Valero Energy executives, urging them to immediately boost refining capacity as gasoline prices climbed over 4 dollars per gallon before Labor Day. Amid global tensions, high crude prices accelerated China’s transition, cutting its oil use by 9% in the second quarter, which drove a 1% drop in its quarterly carbon emissions.
Russia & CIS
Russia-China energy trade grew over 20% to exceed 50 billion dollars during the first seven months of 2026, according to Vice-Premier of the Chinese State Council Ding Xuexiang. This surge comes as Gazprom prepares to launch a new Far East gas route to deliver 10 billion cubic meters per year to China, alongside negotiations for the 50 billion cubic meter “Power of Baikal” pipeline. On the domestic front, Russian Vice-Prime Minister Alexander Novak indicated that Moscow might lift its diesel export ban before its September 30 expiration if inventories build up. However, supply pressures remain high as a Ukrainian drone attack on Sochi and Sirius set a civilian oil depot on fire, while Russian air defenses intercepted over 30 drones targeting Moscow.
Armenia
The Armenian nuclear power plant has successfully resumed electricity generation after completing a scheduled 153-day maintenance program strictly on schedule. This operational restart bolsters Armenia’s domestic grid stability amid intense debates over its geopolitical alignment. Commenting on the strategic shift, Russian political analyst Ghazaryan noted that Moscow’s interests are highly diversified across the South Caucasus, suggesting that if Armenia pursues Western integration, it would lead to a “civilized divorce” from Russia. For now, Armenia’s retail petrol and gas prices remain stable under EAEU treaties, which guarantee duty-free Russian gas imports at long-term fixed rates, insulating local markets from volatile international market price assessments.