️ Months of Ukrainian strikes on Russia's oil infrastructure have led to widespread fuel rationing, with Russian President Vladimir Putin now unable to mask the war's economic effects. The shortages come amid other positive developments for Ukraine, which secured 4 billion euros ($4.6bn) in new military aid commitments from allies for anti-ballistic interceptors, long-range artillery, and unmanned systems.
️ Ukrainian Defense Minister Mykhailo Fedorov announced that Ukraine and Germany signed an agreement to develop a European anti-ballistic interceptor missile, a longstanding goal of President Volodymyr Zelenskyy. The European Union also released 6 billion euros ($6.9bn) in military aid from its European Peace Facility and launched membership talks with Ukraine, both previously delayed by Hungarian Prime Minister Viktor Orban, who lost power in April.
️ Russian independent outlet The Bell reported rationing in 53 Russian regions and occupied Ukraine. Rationing reached Moscow and St. Petersburg, where Tatneft stations limited customers to 20 liters of petrol and 40 liters of diesel per visit. Other chains like Rosneft imposed limits of 90 liters per sale, and some banned canister sales due to "increased seasonal demand."
️ The International Energy Agency reported Russia produced 8.74 million barrels per day in May, down from 8.96 million in April and 100,000 barrels below target. Russian oil producers announced output cuts after infrastructure damage from Ukrainian strikes. Russia reportedly plans to import more refined petroleum from Asia and allowed some refineries to circulate under-refined petrol with higher sulfur content.
️ Ukraine's General Staff said it struck the Moscow Oil Refinery twice in one week, damaging a primary processing unit in the first strike and causing five simultaneous fires in the second, which hit a combined processing unit, secondary processing unit, and tank farm. The refinery halted operations, and pollution forced six Moscow airports to cancel flights.
️ Putin had previously promised to contain Ukrainian long-range strikes but later conceded: "The blows of the Armed Forces of Ukraine damage the Russian economy." However, Zelenskyy remarked that "Putin is rarely provided with completely truthful information." Duma member Vyacheslav Markhaev criticized the economic reforms as ineffective and linked them to Russia's failing war effort.
️ Economist Janis Kluge of the German Institute for International and Security Affairs noted that Russia's defense spending rose 30% in the first quarter compared to last year, and is on track to reach 10% of GDP despite a planned reduction. Falling government revenues mean military spending now accounts for two-thirds of budget revenues.
️ Russia's financial situation may worsen after US President Donald Trump signed a ceasefire with Iran. The US Treasury had waived sanctions on Russian oil to ease global prices during the US-Israeli war on Iran, but the waiver expired on June 17 without renewal.
Source: www.aljazeera.com