The media coverage of the spill-over consequences of the military conflict in the Middle East has concentrated on energy shortages, and especially in the immediate region and Europe. However, there are numerous other commodities impacted as well. In this article we describe the benefits and problems this has brought to Russia – and other Eurasian and global actors. We discuss these in detail.
Russian fuel prices have also risen due to the situation in Iran but are expected to return to normal due to replacement from domestic supplies. However there remain some Middle East supply chain and processing bottlenecks. We examine the supply chain trends.
South Korea’s Sinokor Shipping has added a new China route using Vladivostok in the Russian Far East. The company is the largest Korean shipper operating in Russia, with the new route taking in Busan, Vladivostok, Xiamen, Hong Kong, Shekou and Haiphong.
Russian overseas tourists now spend more on their foreign holidays than European visitors do. A combination of higher purchasing power, disposable income and other factors mean the wealth spending factor is now with the Russians. We explain the reasons why this is so.
Russia has made the decision to redirect most of its EU-bound LNG supplies to Asia ahead of the EU’s planned 2027 termination as it wishes to develop new markets instead of concentrate on declining markets. It is unfortunate for the EU that this also coincides with EU energy supply chain problems with the Middle East.
Subscribe to receive exclusive insights and analysis on Russia.
Mongolia has determined which of its cross-border routes to Russia will handle the bulk of Mongolia-Eurasian Economic Union multilateral trade and is working on expending facilities to cope with demand. The related free trade agreement should be ratified later this year.
Russia’s Vladivostok-based Vladmorrybport has won permission to export Pollock to Brazil with the first shipment being prepared.
Sri Lanka has stated it is interested in joining the BRICS group as views it ‘as a platform to spur its economic growth.’
Neighbouring India is the 2026 BRICS chair and will host annual BRICS summit in late summer. It is possible Sri Lanka could be invited to become a partner nation.
Russia’s President Putin has met with the Central African Republic President Faustin-Archange Touadera in Moscow. The two sides discussed bilateral cooperation, including security, economic ties, and humanitarian issues, also signing an agreement to establish an Intergovernmental Commission for Trade, Economic, Scientific, and Technical Cooperation.
Russian President Putin has assured the Hungarian Prime Minister and Foreign Minister that Russia will do everything in its power to maintain gas supplies to the country. However, he has also said he may shortly cease gas supplies to Europe as Russia is looking for new markets to develop and the European supply situation is a dead-end for Russia. That puts the EU in a serious predicament as supplies from the Middle East are also drying up. We look at how Europe got into this position, and has diminished its standing with Moscow without making adequate contingency plans.
Russian Railways holds the concession for the Armenian South Caucasus Railway, however due to geopolitical differences between Armenia, Azerbaijan and Turkiye, large parts of the track have fallen into disrepair. Armenia wants Russian railways to pay for its restoration and then exit the project as Russian Railways are sanctioned and Yerevan says this is damaging its national transit trade potential as it geopolitical relations have now improved.
Русский
