Russia has detonated a big bomb amid the Iran war. Russian President Putin’s Deputy Prime Minister has announced that he is stopping petrol exports for 4 months.
Let us tell you that Deputy Prime Minister Alexander Novak has formally instructed Energy Department officials to prepare to stop exports. Government media reports said it will continue till July 31.
Novak pointed to the huge fluctuations in crude oil prices that are being caused directly by the increasing hostilities in the Middle East. However, he also said that international demand for Russian energy still remains exceptionally strong.
Since the Strait of Hormuz was effectively closed in late February due to the extension of the Iran war, global energy networks are facing unprecedented pressure. This vital sea route historically handles about one-fifth of the world’s daily petroleum consumption. This means that its ongoing blockade is causing major producing countries to desperately protect their internal reserves, while also having to adapt to changing trade routes and increased shipping costs.
Continuous attacks on Russian energy plants
Ukraine’s continued drone attacks are exacerbating these international market shocks. Recent military attacks this month have successfully disrupted operations at two critical processing centers. These include Rosneft PJSC’s Saratov facility in the Volga region and Surgutneftegaz PJSC’s Kirishi facility near the Baltic Sea. Overall, these damaged sites account for about ten percent of the country’s total refining capacity.