The White House plans to invoke the Defense Production Act via a presidential memorandum to control US fuel prices after Ukrainian President Volodymyr Zelenskyy ignored calls to stop striking Russian refineries. Meanwhile, international arbitration ruled in favor of Rosatom in its Hanhikivi-1 nuclear plant dispute with Finland’s Fennovoima, while Ukrainian delegates walked out of talks with US envoys in response to the US-Russia fuel deal.
Global market
The White House plans to invoke the Defense Production Act to regulate US diesel prices, Reuters reported. Axios revealed that the US-Russia fuel agreement followed Ukrainian President Volodymyr Zelenskyy’s refusal to halt drone strikes on Russian refineries. Compounding market strain, Middle East tanker attacks reached their highest frequency since the conflict began, according to Gibson Shipbrokers. In response to rising risk, independent Chinese refineries began cutting purchases of Iranian crude, providing Washington with additional leverage over Tehran. Meanwhile, the Baltic VLCC index advanced across both Atlantic and Pacific basins.
Russia & CIS
International arbitration recognized the unilateral termination of the Hanhikivi-1 nuclear plant contract by Finland’s Fennovoima as illegal, handing a legal victory to Russian state nuclear corporation Rosatom. At the Zaporizhzhia Nuclear Power Plant, communications director Yevgeniya Yashina warned of a critical supply situation for emergency diesel generators due to Ukrainian drone strikes on transport trucks, appealing to the IAEA to secure safe transport corridors. On domestic retail markets, the Federal Antimonopoly Service facilitated 93 fuel price stabilization agreements across 35 Russian regions, while oil and gas equities led Saturday gains on the Moscow Exchange.
Armenia
The Ukrainian delegation abruptly halted negotiations with US special envoys Steve Witkoff and Jared Kushner in response to the US-Russia fuel agreement, while Ukrainian President Volodymyr Zelenskyy criticized the sanction waiver. US President Donald Trump expressed gratitude to Russian President Vladimir Putin for the petroleum arrangements. Despite regional diplomatic friction, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas imports from Russia and generation at the Armenian Nuclear Power Plant proceed at full capacity under long-term EAEU trade agreements shielding the domestic market from price shocks recorded by international market price assessments.