Kremlin officials stated that stopping refinery strikes is insufficient to resolve the global fuel crisis, calling for lifting exporter sanctions and securing tanker navigation. Simultaneously, drone strikes disrupted half of Russia’s top diesel refinery capacity, while Armenia’s central bank warned of economic risks from gas tariff hikes.
Global market
Ukrainian drone strikes crippled or reduced operations at three of Russia’s six largest diesel refineries, which account for 50% of national diesel output, Reuters reported. The Kirishi refinery shut down completely, while Volgograd and NORSI operated at 25% capacity. Following energy shocks, Australian Energy Minister Chris Bowen traveled to Saudi Arabia for talks with Saudi Energy Minister Prince Abdulaziz bin Salman. In Europe, German Chancellor Friedrich Merz promised price containment measures for retail fuel, while Polish refiner Orlen lost $424 million attempting to purchase Venezuelan crude via cryptocurrency. Additionally, French energy giant TotalEnergies committed €100 million to develop AI exploration tools with startup Mistral.
Russia & CIS
Lifting sanctions on energy exporters and guaranteeing maritime shipping safety are essential for stabilizing global fuel markets, stated Russian Presidential Press Secretary Dmitry Peskov. He noted Russia ranked fourth in European Union gas supply in July, exporting €1.1 billion in pipeline gas and LNG. Domestically, gasoline demand for AI-92 and AI-95 in Saint Petersburg temporarily surpassed supply, creating fuel station queues, while the Bank of Russia estimated fuel price growth contributed 0.7 to 0.8 percentage points to overall inflation. Environmental authorities reported 170 tons of diesel spilled into the Khatanga Gulf in Taymyr. Furthermore, mineral reserves experts projected hard-to-recover gas production reaching 1.1 billion cubic meters by 2050.
Armenia
Central Bank of Armenia Governor Martin Galstyan warned that potential increases in Russian gas import prices represent an “apocalyptic X-type scenario” for Armenia’s economy. The central bank head explained that higher fuel costs would inflate prices of essential goods and compress consumer demand. However, retail petrol, diesel, and natural gas prices in Armenia currently remain stable. Domestic energy security is preserved under long-term trade frameworks within the EAEU, insulating consumers from international market volatility recorded by international market price assessments.