All of Lukoil’s major refineries in Russia are now offline after a Ukrainian drone strike halted crude processing at its NORSI plant on 26 August, Reuters reported the shutdown. NORSI is Russia’s fourth-largest refinery and second-largest gasoline producer.

Ukraine’s General Staff said it had struck the refinery in Kstovo, Nizhny Novgorod Oblast, where a fire subsequently broke out. It said the refinery helps supply Russia’s armed forces.

Industry sources told Reuters that several processing units and other plant infrastructure had been damaged. No repair timetable is available, and Lukoil did not respond to the agency’s request for comment.

NORSI can process about 15 million tons of crude annually and produce about 5 million tons of gasoline and more than 5 million tons of diesel, according to Reuters.

A Reuters dispatch in The Moscow Times said Lukoil listed no NORSI-made gasoline, diesel, or other petroleum products for sale on the St. Petersburg International Mercantile Exchange after the shutdown.

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NORSI’s closure followed the complete shutdown of Lukoil’s Perm refinery after a 21 August drone strike. The company’s Volgograd plant had already stopped processing on 31 July.

The Moscow Times listed four previous occasions this year when drone strikes stopped NORSI from processing crude: 5 April, 20 May, 24 June, and 2 July. The latest attack, therefore, produced the plant’s fifth drone-related shutdown in less than five months.

Lukoil also operates a smaller refinery in Ukhta, which remains active.

Kremlin threatens retaliation

Nizhny Novgorod Oblast Governor Gleb Nikitin wrote that Russian forces had “repelled” more than 40 drones. He also reported damage to an unnamed industrial enterprise, several homes, and cars.

A day later, Kremlin spokesperson Dmitry Peskov promised a “harsh response” to Ukrainian strikes on Russia’s economic and trade infrastructure.

Russia is facing its second bout of fuel shortages this summer. Gasoline sales limits have returned to Moscow and St. Petersburg, while Rosneft has capped purchases at 30 liters per vehicle across its filling-station network, The Moscow Times reported.

Kommersant reported that Astrakhan Oblast had capped gasoline purchases at 30 liters and was serving drivers according to odd- and even-numbered license plates. Orenburg Oblast introduced a similar system and capped purchases at 30 liters to preserve supplies for emergency services and public transport, Governor Yevgeny Solntsev announced.

Five days before NORSI stopped, the Russian government ordered officials to distribute available fuel more evenly between and within regions. Russia also plans to extend its diesel export ban through September as refinery outages constrain domestic supplies.

Ukraine struck one of Russia's largest oil refineries deep in the Urals and a military airfield overnight in a long-range attack, Ukrainian President Volodymyr Zelenskyy announced on 21 August. The Ukrainian Army's General Staff confirmed the refinery and airfield hits, while Zelenskyy said the same night also reached the Black Sea and brought fresh damage from earlier strikes on a Russian warplane and a drone-launch site.

Fire at a major Lukoil refinery in Perm

Zelenskyy said the overnight drones hit the Lukoil-Permnefteorgsintez refinery — known as PNOS — in Perm, where the General Staff recorded a fire on the plant's grounds. The target sits more than 1,500 km from Ukraine's northern border, in a region near the Ural Mountains.

The refinery is one of Russia's largest, able to process more than 13 million tons of crude a year, with more than half its output sold abroad until recently. It supplies fuel to both Russia's economy and its army.

Ukrainian Telegram channels Supernova+ and Exilenova+ shared footage of explosions and a rising plume, with locals reporting a series of blasts at the site. Russia's Perm Krai authorities claimed they repelled the attack and downed 16 drones.

Kyiv has repeatedly hit the plant through the year. After a strike at the end of July, it had been running well below capacity.

Airfield, Black Sea, and other targets the same night

The General Staff said the same night's drones also struck the Marinovka military airfield in Volgograd Oblast, located in Russia's Volga region, with the damage still being assessed, while Zelenskyy added that Ukraine achieved unspecified results in the Black Sea. The military also reported hitting a drone storage and launch site near Donetsk, a materiel warehouse in occupied Crimea, two command posts in Donetsk and Zaporizhzhia oblasts, and six relay stations in Crimea used to steer Russia's Geran and Gerbera attack drones.

Zelenskyy also confirmed damage from earlier strikes: a Russian Su-34 fighter-bomber hit at the Akhtubinsk airfield, about 600 km from the front line, and a drone store and launch site struck at Primorsko-Akhtarsk, roughly 180 km away. The strike extends a run of deep hits this month, from the TANECO refinery in Tatarstan and a Black Sea oil terminal to three refineries hit in one night and an Omsk refinery struck 2,500 km away in Siberia.

State sought to stop system off coast of Santa Barbara from resuming operations after Trump ordered its reopening

An oil pipeline can continue to operate off the California coast after a judge gave it the green light this week, despite the opposition of state regulators and environmental groups.

The system off the coast of Santa Barbara resumed operations earlier this year for the first time in more than a decade after Donald Trump ordered Sable Offshore Corporation to reopen it, citing US energy needs during the war in Iran.

Administration’s plan to scrap drilling-free buffer zone around New Mexico site prompts scrutiny from Unesco

The Trump administration’s push to expand oil and gas extraction across the US is set to bring drilling near cherished natural and cultural sites, raising alarm among conservationists and prompting questions from the UN’s heritage body.

Unesco said it had received information on the administration’s plan to scrap a drilling-free buffer zone around the Chaco Culture national historical park in New Mexico, a world heritage site and one of the most important cultural areas in the US. A Unesco spokesperson said it had procedures regarding “potential threats” to a world heritage property and was awaiting a response from the federal government as to its impact.

The Greek-run oil tanker Skiros was attacked near Novorossiysk on 16 August 2026 after loading Russian crude at the Caspian Pipeline Consortium (CPC) terminal, Bloomberg reported.

The Suezmax-class vessel can carry about 1 million barrels. Bloomberg identified no attacker and provided no information about damage. Skiros’s Athens-based manager told the outlet that no one was injured and no pollution occurred.

CPC primarily exports Kazakh oil and carries more than two-thirds of Kazakhstan’s oil exports. Its shipments recently accounted for almost 2% of the global oil supply. Russian crude typically makes up only 5% to 10% of CPC exports.

Earlier in August, Ukraine agreed not to attack CPC infrastructure or non-Russian ships bound for the terminal if they were not under Ukrainian sanctions and did not carry Russian cargo. Because Skiros carried Russian crude, the protection did not apply to it under the terms Bloomberg described.

Following the July attacks, CPC considered suspending operations due to environmental and safety risks but decided to continue operations, Bloomberg reported.

The Skiros attack ended an almost three-week lull in attacks on ships using the terminal. Bloomberg did not say whether it disrupted oil loading, and CPC declined to comment.

Earlier attacks cut Kazakhstan’s oil production

Earlier attacks suspended loading at the terminal. Kazakhstan’s Energy Ministry confirmed a temporary reduction in oil production to prevent storage facilities from reaching capacity, while Reuters reported CPC loadings fell by a fifth in July.

The disruption also increased shipping and war-risk insurance costs as some operators became reluctant to call at the terminal, The Financial Times reported.

Paralysis of the logistics

Ukraine has not claimed responsibility for the Skiros attack, and Bloomberg did not identify an attacker. In a separate operation in July, the SBU and Navy acknowledged striking sanctioned Russian oil tankers Louise 1 and Banda with Mamai sea drones.

Robert “Madyar” Brovdi, commander of Ukraine’s Unmanned Systems Forces, later described the wider objective as the “paralysis of the logistics” of oil, fuel, and cargo that bypasses sanctions.

India, the world’s biggest edible-oil importer, bought a 10-month high of about 1.5 million tons of vegetable oil in July, up roughly a third from June, as refiners restocked for the August-to-November festival season.

The jump was led by palm oil, up by half, and soybean oil, up about a third, data compiled by UkrAgroConsult. Sunflower oil rose just 4%, the weakest of the three, and India buys most of it from Ukraine and Russia, the world’s leading exporters.

Now the sunflower supply is the one going into reverse. India’s sunflower-oil imports are set to fall in August to their lowest since February, with about 150,000 tons of cargo delayed at Black Sea ports and buyers in the south switching to soybean, four traders told Reuters.

The switch is only partly about the war. Soybean and palm oil are cheap, and India’s own mills are pressing less oil from a smaller domestic harvest, leaving refiners leaning on imports, Rajesh Patel told OFI. The GGN Research partner expects soybean oil imports to top 500,000 tons a month into the autumn.

Russia’s strikes close Ukraine’s window

Ukraine is in no position to capture that demand. Russian strikes on Chornomorsk in mid-July forced Kernel, its largest exporter, to halt its terminals there, and the country’s farmers’ union reckons the summer attacks have cost a third of its capacity to ship grain by sea.

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Vegetable oil and meal earn more than 15% of Ukraine’s foreign currency, among its largest sources of the hard cash that funds the war, the industry association Ukroliyaprom has said.

The squeeze runs through geography Ukraine cannot change: almost all its farm exports leave by sea, through a handful of Odesa ports now under regular fire, with no land route at anything near the scale.

Kyiv now expects to export barely half the harvest it had planned to sell abroad this season, and is arranging emergency loans so farmers can plant the next crop. Since the start of August, grain leaving by rail has dropped by more than three-quarters year-on-year, according to Ukrzaliznytsia data.

Brent crude rises above $90 a barrel for the first time since 30 July after US president tells Tehran to surrender

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Oil prices have risen again after the two-month window to negotiate a peace deal in the US-Israel war on Iran expired on Monday with no end to the conflict in sight.

Iran said on Monday that it would take a more aggressive stance if talks with the US failed, while Donald Trump demanded Tehran “put up the white flag of surrender” in an interview with Fox News.

Ukraine’s sustained drone strikes on Russian refineries have reversed the country’s position as a net fuel exporter. Moscow now imports gasoline from as far as India and Morocco while rushing crude oil through the Arctic to reach Asian buyers it can no longer supply with finished fuel. The flows are scaling up—and running on the same sanctioned, EU-listed tankers.

The reversal is tightening global fuel markets. Russia runs the world’s third-largest refining industry, and the combined disruptions have acted to squeeze supply worldwide, with Moscow banning exports of both gasoline and diesel to keep its own pumps supplied.

Russian refining falls to its lowest since 2002

Ukrainian drone strikes have driven Russian crude processing to 3.6 million barrels a day in July—its lowest level since 2002 and roughly a third below the seasonal norm, according to EA Analytics data cited by Bloomberg.

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Ukraine hit at least 24 of Russia’s 34 largest refineries in some 50 strikes, with five more struck last week and at least two this week. With refining at a 24-year low, Russia is exporting crude through the Arctic while importing refined fuel from India.

Fuel shortages and rationing now affect about 50 million people—a third of Russia’s population. Moscow is subsidizing both the damaged refineries and the imported fuel replacing their output.

Sanctioned tankers take crude toward the North Pole

Seven tankers carrying about six million barrels of crude were heading to Asia through the Northern Sea Route as of 11 August. That volume already amounts to nearly half the approximately 13 million barrels the route carried during the entire 2025 season.

The route cuts two weeks off the voyage to China compared with the Suez Canal, and ice conditions are relatively mild this year, one trader told Reuters.

But speed is only part of the surge. Tankers on the Arctic route bypass European waters, where enforcement has led to inspections and detentions of sanctioned vessels, and Ukraine’s strikes on Black Sea shipping and the Iran–US standoff at Hormuz have narrowed the alternatives.

Vessel-tracking data show the convoy following a route north of the Severnaya Zemlya archipelago rather than through the traditional and more southern Vilkitsky Strait—putting sanctioned oil tankers within 500 nautical miles of the North Pole. Maritime experts said commercial traffic at this scale has never operated that far north.

Russian crude returns home as Indian gasoline

In the opposite direction, gasoline refined from Russian crude at Nayara Energy’s Vadinar refinery in western India is flowing back to Russia through a chain of ship-to-ship handoffs at Egypt’s Damietta Port. At least three cargoes have cycled through the hub since June. The first reached Russia on 5 August.

Bloomberg’s tracking data show the tanker Cyclone loaded 42,000 tons of gasoline at Vadinar on 18 June, transferred the cargo to the Oman-flagged Garnet off Damietta on 6 July, and the Garnet reached Russia in early August. Two more tankers, Varg and Photon, followed the same route in July, with Photon’s cargo handed to the Russian-flagged Talisman on 28–29 July.

All these vessels are under EU sanctions. Garnet and Talisman are also under US sanctions.

Nayara’s refinery, which processes 400,000 barrels a day, is 49% owned by Rosneft. EU sanctions in July 2025 drove away its non-Russian crude suppliers, so the plant switched to processing only Russian oil and now buys and sells through traders—which is how its gasoline reaches Russia without a direct India-to-Russia sale, as Euromaidan Press reported.

The expected September launch of Rosneft’s Vostok Oil project could push more crude through the Northern Sea Route, traders told Reuters. NSR crude shipments fell 4% in 2025. This year’s opening weeks have already matched half the full-season total.

On 4 August, Kazakhstan’s Trade and Integration Minister, Arman Shakkaliyev, confirmed that Russia’s largest online retailer is building 260,000 square meters of warehousing space in Almaty and Astana.

In the same appearance, he told Kazakh shoppers to favor domestic marketplaces instead. Take the construction money, steer the customers away: that is Astana’s answer to a war that has driven Wildberries to look abroad for shelter.

The warehouses aren’t new—they’ve been under construction for years. And officially, the ministry says, Wildberries hasn’t asked to move its Russian operations to Kazakhstan at all. Astana is drawing a careful line: a Russian company can build here, but it cannot relocate its business here to escape the drones.

The wariness predates the strikes. Kazakhstan already taxes foreign marketplaces at 12% and can block those that fail to register. Of marketplace complaints logged in 2024, 73.7% concerned Wildberries, even as home-grown Kaspi held more than 70% of the market to Wildberries’ 17.2%. Astana was fencing the platform in before the first drone struck.

The bill reaches the neighbors

Kazakh sellers put their losses at roughly 2 billion tenge ($4.2 million) by one count, and the Ecommerce-KZ association estimates more than $2.1 million—neither figure has been confirmed, and the minister has told people not to trust the numbers circulating online.

More than 120,000 Kazakh entrepreneurs were on the platform at the end of 2025, and Wildberries says it is repaying them in stages, working with the ministry and the business chamber Atameken.

Kyrgyzstan is hit harder. Its garment industry leans heavily on Wildberries, and individual producers have lost between 1 million and 100 million soms ($11,400 to $1.14 million) each—enough that Bishkek offered a tax holiday to garment firms through year-end.

What Wildberries wants sheltered is not neutral cargo. Ukraine says it strikes the retailer because the platform is used to trade body armor, drones, and their components that reach Russian forces.

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That leaves Kazakhstan exposed: it has spent the past year tightening dual-use export controls to avoid Western secondary sanctions, and now a company that sells to the Russian military wants to move its logistics onto Kazakh ground.

For now, the shelter barely exists. Wildberries wants to rent about 100,000 square meters—close to every empty warehouse Kazakhstan has—and the complexes it is building will not open until 2027. By then, Astana may have made up its mind about how much of Russia’s retreat it actually wants on its soil.

Syria has told the United States it is willing to drastically reduce imports of Russian crude oil as part of discussions over lifting Washington's remaining terrorism-related sanctions on the country, according to three sources familiar with the talks cited by Reuters.

The reported commitment would mark a significant shift for Damascus, which has remained heavily dependent on Russian oil since the fall of Bashar al-Assad despite pursuing closer ties with Western governments.

Russian oil reportedly discussed during sanctions negotiations

According to Reuters, senior Syrian officials told US counterparts they were prepared to reduce Russian oil imports during negotiations over removing Syria from the US list of State Sponsors of Terrorism (SST), one of the last major sanctions designations still applied to the country.

US President Donald Trump announced in July that he intends to rescind Syria's designation, which has been in place since 1979, but the move remains subject to a congressional review period before taking effect.

Three sources told Reuters that the United States requested such a reduction and Damascus agreed, although they said Washington did not formally make it a precondition for lifting the designation.

A US State Department official told Reuters that Washington is encouraging Syria to work with "trusted corporate partners," particularly US companies, during the country's reconstruction and expects Damascus to comply with sanctions targeting Russia.

A White House official, meanwhile, said there was no formal link between removing Syria from the terrorism list and reducing Russian oil imports.

Removing the designation would eliminate one of the biggest remaining barriers to Syria's economic reintegration. While many US sanctions have already been lifted, the terrorism designation continues to restrict access to US assistance and complicate foreign investment, banking, and broader commercial ties, making its removal a key priority for Damascus.

Syria seeks alternatives to Russian crude

Despite improving relations with the West, Syria remains heavily reliant on Russian energy supplies. Reuters reported that Russian crude shipments to Syria have risen by 75% this year to around 60,000 barrels per day, making Moscow the country's dominant oil supplier.

One Syrian source told Reuters that Syrian officials have argued they currently rely on Russian oil out of necessity rather than preference, saying the removal of the terrorism designation would allow Damascus to diversify its energy imports.

A Syrian energy official also told Reuters the government is already searching for alternative suppliers and expects a "radical change" in the country's energy sourcing.

Analysts told Reuters that replacing Russian crude quickly could prove difficult without creating fuel shortages or increasing import costs.

Part of broader US effort to reduce Russia's regional influence

The reported discussions reflect a broader US effort to weaken Russia's remaining economic and strategic influence in Syria following Assad's removal from power.

Reuters noted that Washington has recently placed greater emphasis on reducing Moscow's role in the country, while Congress has directed the Pentagon to examine options for limiting Russia's military presence, including at its naval facility in Tartus and the Hmeimim air base.

The move also mirrors broader efforts to curb demand for Russian energy beyond the European Union. Last month, Georgia's sanctioned Kulevi oil refinery announced it had begun replacing Russian crude with supplies from Kazakhstan and Libya after the EU imposed sanctions over its processing of Russian oil, giving the company six months to complete the transition.

Russia's crude oil shipments have dropped to their lowest level since February, as refinery processing outpaces production growth and trims available export volumes, Bloomberg reported on July 8.

Russia has used its revenues from energy exports to finance the war in Ukraine.

Seaborne crude flows averaged 3.12 million barrels a day over the four weeks to July 6, a 3% decline from the previous period ending June 29, according to tanker-tracking data compiled by Bloomberg. That's the lowest level recorded since the four-week period ending Feb. 23.

The gross value of Moscow's oil exports rose by about $100 million, or 8%, to $1.36 billion for the week ending July 6, Bloomberg said. That increase was due to higher volume, although average export prices declined for a second consecutive week.

Most of Russia's oil continues to head to Asia. Shipments to the region averaged 2.73 million barrels per day, slightly lower than the previous month. Flows to Turkey fell to 370,000 barrels a day, and shipments to Syria held steady at 25,000 barrels a day.

The European Union is seeking to tighten sanctions on Russia. Ambassadors have yet to approve the EU's 18th sanctions package due to opposition from Hungary and Slovakia. The bloc failed to adopt the new package on June 27.

The new package includes restrictions targeting Russia's energy and banking sectors, as well as transactions linked to the Nord Stream gas pipeline.

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The Kyiv IndependentTim Zadorozhnyy

Russia's crude oil production in June fell below its agreed-upon OPEC+ target, according to individuals familiar with the data interviwed by Bloomberg.

Russian producers reportedly pumped 9.022 million barrels per day last month, a figure 28,000 barrels per day below the required level, including compensation cuts. This marks the largest gap between Russia's output and its monthly quota this year, based on Bloomberg's calculations.

Historically, Russia, which co-leads the OPEC+ alliance with Saudi Arabia, has faced criticism for poor compliance with production quotas. However, the nation has shown improved adherence for most of 2025, often pumping below its required levels, according to analysis of Russian data. This increased focus on production discipline follows earlier critiques from Riyadh.

Under the terms of the OPEC+ agreement, Russia's daily production quota for June had increased by 78,000 barrels to 9.161 million barrels. However, Moscow had also committed to a 111,000 barrel-a-day compensation cut for the month, bringing its actual output target to 9.050 million barrels per day.

On July 5, eight OPEC+ nations collectively agreed to raise production by 548,000 barrels per day in August, aiming to capitalize on strong summer consumption. Analysts suggest these additional barrels may be quickly absorbed but could contribute to a crude surplus later in the year.

Independent verification of Russia's oil output data has become challenging since Moscow classified official figures after Western sanctions targeting the nation's energy industry following its full-scale invasion of Ukraine. Consequently, market watchers now largely rely on indicators such as seaborne exports and domestic refinery runs to track trends in Russia's oil production.

Russia striking NATO while China invades Taiwan ‘plausible’ scenario, experts say

If Beijing moves against Taiwan, NATO might soon find itself in a two-front war with China and Russia — or so the alliance’s secretary general believes. “If Xi Jinping would attack Taiwan, he would first make sure that he makes a call to his very junior partner in all of this, Vladimir Vladimirovich Putin… and telling him, ‘Hey, I’m going to do this, and I need you to to keep them busy in Europe by attacking NATO territory,’” Secretary General Mark Rutte said in a July 5 interview with the New

The Kyiv IndependentMartin Fornusek

Russia's economy, which defied initial sanctions and saw growth propelled by massive military spending and robust oil exports, is now showing significant signs of a downturn.

Recent economic indicators are flashing red, with manufacturing activity declining, consumer spending tightening, and inflation remaining stubbornly high, straining the national budget, the Wall Street Journal (WSJ) reported on July 4.

Russian officials are openly acknowledging the risks of a recession. Economy Minister Maxim Reshetnikov warned last month that Russia was on the "verge of a recession," while Finance Minister Anton Siluanov described the situation as a "perfect storm." Companies, from agricultural machinery producers to furniture makers, are reducing output. The central bank announced on July 3 it would debate cutting its benchmark interest rate later this month, following a reduction in June.

While analysts suggest this economic sputtering is unlikely to immediately alter President Vladimir Putin’s war objectives—as his focus on "neutering Ukraine" overrides broader economic concerns—it exposes the limits of his war economy.

The slowdown indicates that Western sanctions, though not a knockout blow, are increasingly taking a toll. If sanctions intensify further or global oil prices fall, Russia’s economy could face more severe instability. This downturn undermines Putin's strategic bet that Russia can financially outlast Ukraine and its Western allies, suggesting Moscow may struggle to finance the war indefinitely.

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The Kyiv IndependentTim Zadorozhnyy

Experts warn that Russia's economic growth model, overly reliant on military spending, is unsustainable and necessitates a contraction of civilian economic capacities to free up workers for the war machine, which is not a viable long-term strategy. Putin recently dismissed suggestions that the war is stifling the economy, echoing Mark Twain by stating reports of its death "are greatly exaggerated." However, he also cautioned that a recession or stagflation "should not be allowed under any circumstances."

After a brief recession in 2022, military spending, which accounts for over 6% of gross domestic product this year (the highest since Soviet times) and approximately 40% of total government spending, had propped up Russia’s economy and blunted the impact of Western sanctions. Russia’s ability to reroute oil exports to China and Beijing’s support with electronics and machinery provided additional economic stimulus. This created an economic paradox: the most sanctioned major economy was, for a period, growing faster than many advanced economies.

However, this military spending "sugar rush" fueled runaway inflation, compelling the central bank to raise interest rates to a record 21% to try and tame it. Higher interest rates increased borrowing costs for businesses, curbing investment, expansion plans, and squeezing profits. The economic comedown has already begun.

Official data shows Russian GDP growth slowed to 1.4% in the first quarter compared to a year earlier, down significantly from 4.5% in the fourth quarter of 2024. S&P Global’s purchasing managers’ index indicated Russia’s manufacturing sector contracted at its sharpest rate in over three years in June, and new car sales dropped nearly 30% year-over-year in June.

Businesses across Russia are feeling the effects, according to the WSJ. Rostselmash, the country’s largest producer of agricultural machinery, announced in May it would cut production and investment, and pull forward mandatory annual leave for its 15,000 employees due to a lack of demand. In Siberia, electricity grid operator Rosseti Sibir stated it was on the verge of bankruptcy due to high debt, halting investments and proposing tariff hikes for industrial users.

While some analysts argue the Russian banking system remains stable, others warn of increasing instability. A recent report by the Washington, D.C.-based Center for Strategic and International Studies (CSIS) highlighted risks from a government decision to control war-related lending at major Russian banks. The state could direct banks to offer preferential loans, potentially forcing the government to absorb losses if high interest rates prevent companies from meeting obligations.

The Moscow-based Center for Macroeconomic Analysis and Short-Term Forecasting also assessed in May that the risk of a protracted systemic banking crisis in 2026 was "moderate" and growing.

These economic challenges intensify pressure on the Kremlin by reducing its financial capacity to fund its war in Ukraine. The government has operated with a budget deficit throughout the war and projects this will continue for at least two more years. This fiscal strain could provide an opening for Western nations to implement more powerful sanctions.

Falling oil prices present another significant risk for Russia, as energy sales account for about a third of its budget revenues. The price of Russian crude has consistently remained below the level assumed in this year’s budget, and Russia’s oil-and-gas revenue in June fell to its lowest level since January 2023, according to Finance Ministry data.

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The Kyiv IndependentTim Zadorozhnyy

Iran is reportedly preparing to mine the Strait of Hormuz, a move that would spike global oil prices and give a significant boost to the Russian economy and its war machine in Ukraine.

Reuters reported on July 1 that Iran loaded naval mines onto vessels in the Persian Gulf last month, citing two U.S. officials, who said the preparations had been detected after Israel launched its "preemptive" attack against Iran on June 13.

Amid the conflict with Israel which has currently settled into an uneasy ceasefire, Iran has repeatedly threatened to block the Strait of Hormuz as a means of deterrence.

If the Strait were mined, Iran could block one-fifth of global oil demand and spike world energy prices — a boon for Russia's oil-dependent economy.

"Any disruption to Gulf supplies would push up global crude prices. Prices for Russian crude would rise in line," John Gawthrop, Argus Eurasia Energy editor, told the Kyiv Independent.

Russia’s energy sector made up 35-40% of its budget revenues pre-full-scale invasion and is powering its war machine.

Western sanctions on Russian energy and the G7’s Russian oil price cap of $60 per barrel have hampered its profits, with Russia losing more than $150 billion over the last three years, but have yet to deal a crippling blow.

The conflict between Israel and Iran caused a spike in prices — Brent crude, the global benchmark, on June 13 jumped from $69.36 to $75 per barrel, a surge that looked like it could grant Russia's economy a reprieve.

Until the Israeli attacks, the future for Russian crude wasn’t looking so bright. Europe was planning its 18th sanctions package targeting Russia's energy sector, and the G7 was pushing for a $45 price cap. Hungary and Slovakia have since blocked the sanctions package.

Prices have since settled along with the conflict and on July 2 Brent crude was $67.50, but if Iran does go ahead with mining the Strait of Hormuz, blocking one-fifth of global oil demand, another surge would follow.

This would also mean Iran blocks its own oil exports too, so it would only be a last resort from Tehran, David Fyfe, chief economist at Argus Media, a market analyst group, told the Kyiv Independent last month.

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The Kyiv IndependentTim Zadorozhnyy

Ukrainian drones struck the Saratovorgsintez oil refinery in Russia's Saratov Oblast, causing damage to the facility, Ukraine's General Staff reported on July 1.

"An important facility has been hit," the General Staff said via its official Telegram channel.

The Saratovorgsintez refinery and chemical plant, owned by Russian energy giant Lukoil, is located nearly 1,500 kilometers (930 miles) from Ukraine's border in the city of Saratov. The city hosts multiple strategic military and industrial sites.

The refinery was targeted to "reduce the enemy's offensive capabilities," the General Staff wrote.

"The occupiers use the capacity of this refinery to supply fuel and lubricants to Russian military units involved in the armed aggression against Ukraine."

The attack was a joint operation carried out by Ukraine's military intelligence agency (HUR) and other military units, the General Staff said. A fire broke out at the site of the attack and damage to the refinery's technological installations has been confirmed. The full consequences of the strike are still being investigated.

The Kyiv Independent could not verify these claims.

The report is the latest in a series of announcements on July 1 about successful Ukrainian strikes on Russian targets. Earlier in the day, HUR released footage of Ukraine's UJ-26 drones, commonly known as Bober (Beavers), targeting high-value Russian air defenses and a fighter jet in occupied Crimea.

A source in the Security Service of Ukraine (SBU) told the Kyiv Independent that Ukrainian drones struck a major Russian military plant in the city of Izhevsk, over 1,300 kilometers (800 miles) from the front lines.

Ukraine also hit a Russian command post in occupied Donetsk Oblast, according to the General Staff.

Ukraine war latest: Ukrainian drones strike Russian plant 1,300km from border, SBU source says

Key developments on July 1: * ‘With surgical precision’ — Ukrainian drones strike Russian plant 1,300km away, SBU source says * Russian missile strike on Dnipropetrovsk Oblast kills brigade commander, injures 30 people, Zelensky says * Ukrainian forces hit Russian command post in occupied Donetsk Oblast, General Staff says * Zelensky signs ratification of

The Kyiv IndependentThe Kyiv Independent news desk

Editor's note: The article was updated with a statement from Ukraine's military intelligence agency.

A tanker carrying 1 million barrels of oil experienced an explosion near Libya, its operator, TMS Tankers, said on June 30. The vessel, Vilamoura, is now being towed to Greece, where the extent of the damage will be assessed upon arrival.

The blast caused the engine room to flood due to water intake, though the cause of the explosion remains unclear, according to a company spokesperson.

The spokesperson confirmed that the crew is safe and no pollution has been reported.

The explosion occurred on June 27 as the vessel was departing the Libyan port of Zuwetina, some 150 kilometers (90 miles) northeast of Libyan territorial waters, Ukraine's military intelligence reported.

The incident comes amid a series of unexplained blasts targeting oil tankers that had previously visited Russian ports. In response, shipowners have started inspecting their vessels for mines using divers and underwater drones.

Vilamoura had visited Russian oil terminals twice since April, loading Kazakh-origin crude rather than Russian oil. According to Bloomberg vessel-tracking data, the tanker called at the Russian port of Ust-Luga in early April and at the Caspian Pipeline Consortium (CPC) terminal near Novorossiysk in May. Both terminals primarily handle Kazakh crude exports.

Maritime risk consultancy Vanguard Tech reported that four other vessels have been damaged by explosions since the beginning of the year. Each had recently docked at Russian ports, the firm said.

Ukraine has targeted Russian energy assets throughout the full-scale invasion, including a drone strike in February on the CPC pipeline, a route responsible for moving roughly 80% of Kazakhstan’s oil exports.

Russia-Iran alliance wavers as Tehran suffers major blows

Tehran, Russia’s main ally in the Middle East, has been dealt a heavy blow as Israel dismantled its network of proxies and then struck targets in Iran. The recent Iranian-Israeli war, which ended with a ceasefire on June 24, showed that the regional balance of power has shifted in Israel’s favor. This could have a major impact on Russian-Iranian relations as Moscow will have to recalibrate its approach to the region. Russian-Iranian cooperation is likely to continue but Iran’s ability to help

The Kyiv IndependentOleg Sukhov

Around 50% of Americans support sanctions against countries that purchase Russian oil and gas, according to the results of a YouGov poll published on June 27.

A bipartisan sanctions bill in the U.S. Senate aims to slap 500% tariffs on imports from countries that continue to purchase Russian energy products. U.S. President Donald Trump has not backed the measure and a vote on the bill has reportedly been postponed.

In a YouGov survey of adult U.S. citizens conducted June 12-16, 24% said they "strongly support" sanctioning Russian energy buyers while 25% said they "somewhat support" secondary sanctions against these countries.

Like the Senate bill, support for secondary sanctions among respondents was bipartisan. Of "strong supporters," 26% indentified as Democrats while 27% were Republicans.

More Republicans than Democrats said they favored the specific 500% tariff penalty proposed by legislators. While 29% of respondents who "strongly supported" the measure were Democrats, 41% were Republicans. Only 32% of survey respondents overall said they supported the 500% tariff.

The 500% tariff has been championed by Republican Senator Lindsey Graham, a Trump ally and co-author of the sanctions bill alongside Democrat Richard Blumenthal. Along with tariffs on countries purchasing Russian oil, the bill would also slap "bone-crushing" new sanctions against Russia, according to Graham.

A majority of Americans support increasing or maintaining U.S. sanctions against Russia, the survey found. Here the division along party lines is stark, with 59% of those in favor of increasing sanctions on Moscow identifying as Democrats and only 37% identifying as Republicans.

The poll also showed that about 50% of Americans oppose cutting military aid to Ukraine. According to YouGov, 26% of U.S. adults are in favor of increasing military aid while 23% believe Washington should maintain its current levels of support.

The results illustrate the contrast between the prevailing views of the American public and the policies of the Trump administration. Trump has repeatedly undercut the Senate sanctions bill, requesting delays to the vote and calling on lawmakers to weaken the proposed measures.

While Trump has at times threatened to impose new sanctions on Russia, he has never followed through on any of those threats and consistently shoots down domestic and international appeals to get tough on Moscow. At the recent G7 Summit in Canada, Trump reportedly insisted that sanctions would be at odds with U.S. business interests.  

U.S. Defense Secretary Pete Hegseth also announced earlier this month that Washington will cut military aid to Ukraine in its upcoming defense budget.

‘Putin cannot stop’ – Estonian foreign minister says war in Ukraine existential for Russian president

As Russia continues to intensify its onslaught on Ukraine more than three years into the full-scale invasion, Kyiv faces a new challenge – keeping its Western allies, namely the new U.S. administration, engaged in the struggle. This became clear during the NATO summit in The Hague on June 24-25, where

The Kyiv IndependentMartin Fornusek

Ukraine's Armed Forces struck the Atlas oil depot in Russia's Rostov Oblast overnight on June 23, the General Staff reported.

The attack ignited a fire at the site, with Ukrainian forces saying the strike had reached its intended target. The facility supplies fuel and lubricants to Russian military units.

Yuri Slyusar, the acting governor of Rostov Oblast, confirmed that a fire occurred at an industrial facility after the attack. He added that no one was injured.

The full extent of the damage is still being assessed, according to the military.

Located near the Azov Sea and bordering Ukraine, Rostov Oblast plays a crucial logistical role for Russia's war effort due to its proximity to front-line operations. The same depot was previously targeted in November 2024.

"The defense forces continue to take all measures to undermine the military and economic potential of the Russian occupiers and force the Russian Federation to stop its armed aggression against Ukraine," the General Staff said.

The strike is part of Ukraine's broader campaign aimed at disrupting Russian supply chains and degrading its capacity to sustain the full-scale invasion.

Fuel depots, rail infrastructure, and ammunition stockpiles inside Russia and occupied territories have increasingly become targets for long-range drone and missile strikes.

Explained: How Ukraine and Russia swap prisoners of war

Even after Ukraine cut diplomatic ties with Russia in 2022, prisoner exchanges have continued as one of the few remaining channels of communication between the two countries. Negotiated behind closed doors and carried out irregularly, POW swaps — and the decisions surrounding them — have long been shrouded in secrecy. Controversies have

The Kyiv IndependentDaria Shulzhenko

U.S. President Donald Trump on June 23 called for urgent measures to prevent rising oil prices amid escalating tensions with Iran.

"Everyone, keep oil prices down. I'm watching," Trump wrote on Truth Social. "To the Department of Energy: Drill, baby, drill! And I mean now."

The post comes after global oil prices surged on June 13 following a series of Israeli air strikes on Iranian nuclear facilities. The escalation sparked fears of broader conflict in the energy-rich Middle East, home to critical oil shipping routes.

The surge in oil prices risks undermining Western attempts to curb Russia's war funding, as the Kremlin relies heavily on oil revenues to sustain its invasion of Ukraine. President Volodymyr Zelensky has warned that a price surge could further embolden the Kremlin.

On June 21, the U.S. joined Israel in conducting airstrikes that targeted three nuclear facilities in Iran — Fordow, Natanz, and Esfahan. The operation triggered a strong response from Tehran, which threatened to block the Strait of Hormuz, a key global oil transit route.

U.S. Vice President JD Vance responded on June 22 that any Iranian attempt to shut the strategic waterway would "destroy their own economy." The strait is a vital chokepoint for global energy supplies, with nearly a fifth of the world's oil passing through it daily.

Amid the turmoil, the EU has reportedly postponed plans to tighten the $60-per-barrel price cap on Russian crude, originally imposed in December 2022. The mechanism restricts Western firms from shipping or insuring Russian oil sold above that threshold.

The Russian Finance Ministry has relied heavily on energy revenues to sustain defense spending, which hit record highs this year.

Ukraine has evidence Russia prepares military operations in Europe, Zelensky says

“We are observing a continued intellectual decline within the Russian leadership and have evidence that they are preparing new military operations on European territory,” President Volodymyr Zelensky said.

The Kyiv IndependentNatalia Yermak

Ukrainian strikes deep inside Russian territory between January and May have cost Russia over $10 billion, including $1.3 billion in direct damage to industrial facilities and infrastructure, Commander-in-Chief Oleksandr Syrskyi told journalists on June 21.

The indirect damage caused by the disruption of Russian industrial activities is estimated at $9.5 billion, putting the cost-to-result ratio of Ukrainian deep strikes at 1:15, Syrskyi said at a briefing attended by the Kyiv Independent.

Kyiv has ramped up drone attacks against Russian military and industrial sites far behind the border as part of its DeepStrike strategy, seeking to undermine Moscow's ability to wage war.

The attacks targeted Russia's oil refining sector, the fuel and lubricants facilities, energy and transport support, and strategic lines of communication.

"Remember that during negotiations, the Russian side listed a halt to strikes against the oil refining industry as one of the conditions. This shows that our strikes are truly effective," Syrskyi said.

Oil and gas exports are among Russia's key revenue sources and play a crucial role in sustaining its war effort.

"Of course, we will continue (attacking deep inside Russian territory). We will increase the scale and the depth," the commander added, stressing that the attacks target solely military facilities.

Ukraine has increased the production of long-range drones with the support of Western partners and developed new tactics in striking Russia behind the lines.

In one of the most audacious attacks, the Security Service of Ukraine (SBU) on June 1 struck dozens of Russian bombers and other aircraft across four different air bases in an operation dubbed Spiderweb. SBU drones were smuggled to Russia in trucks and then deployed to attack airfields thousands of kilometers from the Russia-Ukraine border.

Russia ‘afraid to admit’ scale of losses, trying to hide by dumping soldiers’ bodies on Ukraine, Zelensky says

Ukrainian authorities have confirmed that at least 20 of the bodies Russia returned as Ukrainian were actually Russian soldiers, President Volodymyr Zelensky said.

The Kyiv IndependentTim Zadorozhnyy

The European Union has postponed a move to lower the existing price cap on Russian oil, after concerns that the Iran-Israel conflict could lead to higher prices, Politico reported on June 20, citing unnamed diplomatic sources.

The price cap, introduced in December 2022 as a measure to limit the Kremlin's ability to finance its war against Ukraine, prohibits Western companies from shipping, insuring, or otherwise servicing Russian oil sold above $60 per barrel.

Ukraine has been calling on Western partners to lower the price cap on Russian oil from $60 to $30 per barrel. Meanwhile, two diplomats told Politico that the escalation of the conflict between Iran and Israel would make it impossible to impose new restrictions.

"The idea of lowering the price cap is probably not going to fly because of the international situation in the Middle East and the volatility," said one diplomat on the condition of anonymity.

The issue of reducing the price cap on Russian oil was discussed during the Group of Seven (G7) summit, which was held June 15-17 in Canada. However, the participants failed to reach a consensus.

"At the G7 meeting this week, it was agreed by all the countries they would prefer not to take the decision right now," the diplomat added. "The prices were quite close to the cap; but now the prices are going up and down, the situation is too volatile for the moment."

European Commission President Ursula von der Leyen said during the G7 summit that the existing measures on Russian oil exports "had little effect," while noting that oil prices had risen in recent days, so "the cap in place does serve its function. "

Global oil prices spiked on June 13, after Israeli strikes on Iran triggered a long-range war between the two countries that has continued for over a week.

Brent and Nymex crude prices surged more than 10% before stabilizing around 7.5% higher, with Brent at $74.50 a barrel and Nymex at $73.20 as of June 20, the BBC reported.

The spike threatens to undermine Western efforts to restrict the wartime revenue of the Russian state, which depend heavily on oil exports.

EU High Representative Kaja Kallas previously urged the European Union to pursue lowering the oil price cap on Russian oil, even without U.S. support, warning that Middle East tensions could otherwise drive prices up and boost Russia's revenues.

After 3 years of full-scale war in Ukraine, Europe finally lays out road map to detox from Russian oil and gas

After three years of limited measures and political hangovers, the European Union has laid out a legal roadmap to finally end its long-standing addiction to Russian oil and gas. Under a new legislative proposal announced in Strasbourg on June 17, Brussels aims to cut off all remaining imports of Russian

The Kyiv IndependentAlex Cadier

Australia has, for the first time, imposed sanctions on Russia's so-called "shadow fleet" of oil tankers, targeting 60 vessels used to circumvent international sanctions and sustain the Kremlin's war effort in Ukraine, the Australian government said on June 18.

The move aligns Canberra with similar measures introduced by the United Kingdom, Canada, and the European Union.

Australia's Foreign Ministry said the sanctioned vessels operate under "deceptive practices, including flag-hopping, disabling tracking systems and operating with inadequate insurance," enabling illicit Russian oil trade that undermines international sanctions.

"Russia uses these vessels to circumvent international sanctions and sustain its illegal and immoral war against Ukraine," the ministry said in a statement.

With this move, Australia has now sanctioned more than 1,400 Russian individuals and entities since Moscow's full-scale invasion of Ukraine began in February 2022, the government said.

The step comes amid the continued operation of Russia's shadow fleet. According to a recent study by the Kyiv School of Economics (KSE), Russia currently operates 435 tankers outside the control of Western regulators to evade sanctions such as the G7-EU price cap on Russian oil.

These vessels are typically un- or underinsured and pose a rising environmental risk due to their age and operational opacity.

KSE estimates that as of April 2024, 83% of Russia's crude oil and 46% of its petroleum product exports were shipped using shadow fleet tankers. The study warns that this undermines the effectiveness of Western sanctions and increases the likelihood of maritime disasters, as many of these ships fall outside international safety and insurance standards.

The EU formally adopted its 17th sanctions package against Russia in May, sanctioning nearly 200 vessels tied to the shadow fleet. EU foreign policy chief Kaja Kallas said the new measures also target hybrid threats and human rights violations, with more sanctions under consideration.

Some EU member states and observers have criticized the package for lacking stronger provisions to disrupt Russia's sanction evasion schemes.

Now, the EU seeks to approve its 18th sanctions package, which will add 77 more shadow fleet vessels to comply with the cap to prevent Russia from circumventing sanctions and propose imposing a ban on imports of petroleum products made from Russian oil.

The United States has signaled reluctance to pursue additional sanctions despite Moscow's continued aggression in Ukraine and rejection of ceasefire proposals supported by Western allies.

Putin ‘cannot be trusted’ as mediator, Kallas says, urges EU to tighten Russian oil cap after deadly Kyiv strike

EU High Representative Kaja Kallas urged the European Union to press forward with lowering the oil price cap on Russian crude, even without U.S. support, warning that Middle East tensions could otherwise drive prices up and boost Russia’s revenues.

The Kyiv IndependentAnna Fratsyvir

Russian President Vladimir Putin "cannot be trusted" to mediate peace in the Middle East while continuing to launch brutal attacks against civilians, EU High Representative Kaja Kallas said on June 17, following a mass Russian strike on Kyiv that killed at least 21 people and injured over 130.

"Clearly, President Putin is not somebody who can talk about peace while we see actions like this,” Kallas said during a briefing in Brussels. "He's not a mediator that can really be considered. Russia cannot be a mediator if they don't really believe in peace."

Russia has sought to position itself as a potential mediator in the escalating conflict between Israel and Iran. Kremlin spokesperson Dmitry Peskov said on June 17 that Israel appeared unwilling to accept Russia’s offer of mediation.

President Donald Trump said on June 15 that Putin had expressed willingness to help mediate between Tel Aviv and Tehran — an idea already dismissed by France. EU leaders have also questioned Moscow’s neutrality given its deep military ties with Iran, which has supplied Russia with drones and missiles used in attacks on Ukraine.

Kallas also pointed to Iran's role in enabling Russia's attacks. "Iran has helped Russia do these attacks… their cooperation is working in this regard," she said.

Kallas urged the European Union to press forward with lowering the oil price cap on Russian oil, even without U.S. support, warning that Middle East tensions could otherwise drive prices up and boost Russia's revenues.

"The whole idea of the oil price cap is to lower the prices," Kallas said. "We shouldn't end up in a situation where the crisis in the Middle East increases oil prices and makes Russia earn more… that would mean they can fund their war machine on a bigger scale."

Her warning comes after global oil prices soared on June 13, following an Israeli strike on Iran that raised fears of a broader regional conflict. Brent and Nymex crude prices surged more than 10% before stabilizing around 7.5% higher, with Brent at $74.50 a barrel and Nymex at $73.20, the BBC reported.

The spike threatens to undermine Western efforts to restrict Russia’s wartime revenues, which heavily depend on oil exports.

Earlier, Kallas said the EU can act independently to lower the oil price ceiling, noting that most Russian crude flows through European-controlled waters.

"Even if the Americans are not on board, we can still do it and have an impact," she said.

Her remarks come as the EU works on its 18th sanctions package targeting Russia's energy, banking, and defense sectors. The 17th package entered into force on May 20. European Commission President Ursula von der Leyen has said new measures will further target Russia's war-sustaining supply chains.

Kallas spoke hours after one of Russia's deadliest attacks on Kyiv since the start of its full-scale invasion. The nearly nine-hour assault saw Moscow fire 472 aerial weapons, including over 280 Shahed drones and multiple cruise and ballistic missiles.

Ukraine's Air Force reported intercepting 428 targets, but several missiles hit residential buildings, including a nine-story apartment block in Solomianskyi district, where 16 people were killed.

President Volodymyr Zelensky called the assault "one of the most horrifying attacks on Kyiv" and again called on Western leaders to act decisively.

After 3 years of full-scale war in Ukraine, Europe finally lays out road map to detox from Russian oil and gas

After three years of limited measures and political hangovers, the European Union has laid out a legal roadmap to finally end its long-standing addiction to Russian oil and gas. Under a new legislative proposal announced in Strasbourg on June 17, Brussels aims to cut off all remaining imports of Russian

The Kyiv IndependentAlex Cadier

An uninsured Russian Aframax-class tanker has been illegally conducting ship-to-ship oil transfers in international waters near Greece and Cyprus since July 2024, Ukraine's military intelligence (HUR) reported on June 16.

According to the agency, the vessel, operating without Western insurance, is part of Russia's expanding shadow fleet used to bypass G7 and EU sanctions on Russian oil exports.

HUR said such transfers "pose an environmental threat, allow the aggressor to conceal the origin of oil, evade international control, and ensure its supply to third countries in circumvention of sanctions."

Ukraine has identified the tanker as IMO 9247443 and listed it on the War&Sanctions platform, along with 159 other tankers allegedly belonging to Russia's shadow fleet and 55 captains involved in sanction-busting operations.

Despite price caps and Western restrictions, Russia continues to profit from oil and gas exports, which remain a vital revenue source. According to HUR estimates, roughly one-third of those profits are expected to fund Russia's war against Ukraine in 2025.

In May, the EU approved its 17th sanctions package, targeting nearly 200 shadow fleet vessels. The U.S. Treasury had earlier sanctioned over 180 tankers, which together accounted for nearly half of Russia's offshore oil shipments.

While the Biden administration ramped up pressure on Russia's oil trade early in 2024, U.S. President Donald Trump has since declined to impose new sanctions, despite Moscow's continued refusal to agree to a ceasefire.

EU leaders call for tougher sanctions on Russia at G7 summit

“To achieve peaceful strength we must put more pressure on Russia to secure a real ceasefire, to bring Russia to the negotiating table, and to end this war. Sanctions are critical to that end,” European Commission President Ursula von der Leyen said.

The Kyiv IndependentAbbey Fenbert

The United States is opposing a proposal by other Group of Seven nations to lower the price cap on Russian oil, Bloomberg reported on June 13.

Citing unnamed sources, Bloomberg said the U.S. remains opposed to reducing the cap from $60 to $45 per barrel – a position it first took earlier this year when Treasury Secretary Scott Bessent declined to support a similar effort.

The price cap, introduced in December 2022 as a measure to limit the Kremlin's ability to finance its war against Ukraine, prohibits Western companies from shipping, insuring, or otherwise servicing Russian oil sold above $60 per barrel.

Despite U.S. resistance, the European Union and United Kingdom – backed by other European G7 countries and Canada – have said they are prepared to move forward with the proposal, even without Washington's endorsement.

One source told Bloomberg that the EU and U.K. could explore lowering the cap without the U.S., as most of Russia's oil is transported in European waters. However, a unified G7 agreement would carry greater impact if it could be enforced by the U.S.

The price cap debate has become more urgent as oil prices, which had fallen below the $60 cap in recent months, surged following Israel's strikes against Iran in the past 24 hours.

G7 leaders will revisit the price cap discussion during the upcoming summit, hosted by Canada from June 15-17 in Kananaskis County, Alberta.

The summit agenda will also include topics such as support for Ukraine in the Russian war, global economic stability, digital transformation, and climate change.

The G7 currently includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The European Union is also represented in the group.

Israel-Iran war could provide economic boost Russia needs to continue fight against Ukraine

Israel’s “preemptive” strikes against Iran targeting the country’s nuclear program and killing top military officials could have far-reaching implications for Ukraine and could boost Russia’s ability to continue its full-scale invasion, experts have told the Kyiv Independent. Iran has been one of Russia’s staunchest allies throughout the war, providing thousands

The Kyiv IndependentChris York

Global oil prices soared on June 13  after Israel launched a strike on Iran, triggering fears of a broader conflict in the energy-rich Middle East that could disrupt global supplies, the BBC reported.

The spike threatens to undermine Western efforts to choke off a vital revenue stream for Russia, which relies heavily on oil profits to sustain its war in Ukraine.

According to the BBC, Brent and Nymex crude prices jumped by more than 10% following the Israeli attack, reaching their highest levels since January. Prices later stabilized but remained about 7.5% higher, with Brent at $74.50 a barrel and Nymex at $73.20.

The price surge comes at a crucial time for Ukraine and its Western allies, who are intensifying efforts to minimize the Kremlin's oil revenues — the backbone of Russia's wartime economy.

President Volodymyr Zelensky urged the European Union on June 11 to impose tougher sanctions on Russia, including a more aggressive price cap on oil exports.

"A ceiling of $45 per barrel of oil is better than $60, that's clear," Zelensky said at the Ukraine-Southeast Europe Summit in Odesa. "But real peace will come with a ceiling of $30. That's the level that will really change the mindset in Moscow."

The EU's current $60 per barrel cap, introduced in December 2022, prohibits Western companies from shipping, insuring, or servicing Russian oil sold above the threshold. While this measure has curtailed some of Russia's profits, the Kremlin continues to earn significant revenue, especially when market prices rise.

European Commission President Ursula von der Leyen said on June 10 that the EU is considering lowering the cap to $45, a move that will be discussed at the G7 summit in Canada between June 15 and 17. According to Reuters, most G7 countries, excluding the U.S. and Japan, are prepared to proceed with the reduction regardless of Washington’s stance.

Israeli Prime Minister Benjamin Netanyahu said early on June 13 that Israeli forces had launched "Operation Rising Lion," a preemptive strike targeting Iran's nuclear program. In a televised address, Netanyahu claimed Israeli forces struck Iran's main nuclear enrichment site in Natanz and targeted key nuclear scientists.

Key to Russia’s defeat lies in its economy

As the war in Ukraine grinds on, attention remains fixed on the battlefield. But Russia’s most vulnerable flank is not in the trenches — it’s in the treasury. The West, and especially the United States, holds economic levers that could push Vladimir Putin toward serious negotiations or even collapse

The Kyiv IndependentWojciech Jakóbik

Most Group of Seven (G7) nations are prepared to lower the Russian oil price cap from $60 to $45 a barrel even without support from the United States, Reuters reported on June 12, citing unnamed sources familiar with the matter.

According to Reuters, the European Union and United Kingdom, backed by other European G7 countries and Canada, are ready to lead the charge in lowering the Russian oil price cap – even if U.S. President Donald Trump opts out.

The price cap, which bans Western companies from shipping, insuring, or otherwise servicing Russian oil sold above $60 per barrel, was first introduced in December 2022 as a measure to limit the Kremlin's ability to finance its war against Ukraine.

The G7 had previously attempted to lower the Russian oil price cap; however, the proposal was dropped after U.S. Treasury Secretary Scott Bessent reportedly declined to support it.

It is unclear whether the U.S. will support the decision this time around. Japan's position is also undecided.

Participating country leaders will revisit the price cap discussion at the upcoming G7 summit. Canada, which holds the G7 presidency this year, will host the summit on June 15-17 in Kananaskis County, located in the western province of Alberta.

The summit agenda will include topics such as support for Ukraine in the Russian war, global economic stability, digital transformation, and climate change.

President Volodymyr Zelensky is expected to attend the summit and seek a meeting with U.S. President Donald Trump.

EU could impose Russian oil price cap without US support, Kallas says

The European Union can impose an additional price cap on Russian oil without U.S. support, EU High Representative Kaja Kallas said at the Brussels Forum on June 11.

The Kyiv IndependentVolodymyr Ivanyshyn