Russia's seaborne exports of refined oil products rose to a three-month high in September, but the growth came from cheaper fuel oil and naphtha as diesel shipments fell to their lowest in more than a decade, Bloomberg reported, citing Vortexa data. Russia kept diesel at home after Ukrainian refinery strikes and paid oil companies to supply its pumps, while high crude prices lifted its crude export earnings.
During the ongoing deep-strike campaign, Ukraine's long-range drones have knocked out more than half of Russia's oil refining capacity, Kyiv says, and Russia's budget oil revenues are falling even as it raises war spending. High global crude prices are softening that blow.
Total seaborne product exports reached about 1.17 million barrels a day in September. Fuel oil shipments rose 6% to about 613,000 barrels a day, the highest since April. Naphtha, a feedstock for petrochemicals, jumped 35% to 363,000 barrels a day. Exports of refinery feedstocks, including vacuum gasoil, rose to about 32,000 barrels a day, according to Bloomberg.
The trade has moved north. Almost 80% of fuel oil cargoes left from Baltic ports, and naphtha loadings there rose almost 50% as Ukrainian attacks disrupted Black Sea infrastructure. In September, Ukraine reported hitting an oil terminal in Novorossiysk, Russia's main Black Sea oil port—one in a string of attacks on Russia's Black Sea ports and oil sites.
Diesel and gasoil exports fell 28% to 144,000 barrels a day, the lowest monthly volume in Vortexa data going back more than a decade. Russia has restricted diesel exports to protect domestic supply after Ukrainian attacks on its refineries. Drones kept hitting them into October, from a Lukoil refinery in Volgograd to Gazprom's Salavat complex in Bashkortostan.
In September, Russia paid oil companies the biggest subsidy in more than four years to keep road fuel on the domestic market. It also imported about 350,000 tonnes of motor fuel by sea, mostly gasoline from India, Morocco, and Türkiye, Reuters calculations showed. Officials are considering letting some producers resume diesel exports in October to avoid overstocking, according to Interfax.
The diesel squeeze has reached the White House. US President Donald Trump stated on 30 September that diesel was hurt "not by the Middle East, but by what's going on in Russia, because those diesel refineries are being knocked out at a pretty alarming rate."
Russia's crude exports reached about 3.99 million barrels a day in the week to 27 September, and the estimated value of its seaborne crude shipments neared its highest since the full-scale invasion began, Bloomberg reported. Brent crude traded at about $102.60 a barrel on 9 October, according to Trading Economics data.
More than 50 Russian companies could default on their bonds this year, the most since 2009, a rating-agency analyst told Russian newspaper Izvestia, which reported it on 6 October.
Russia's wartime economy is straining under high interest rates, and the budget is too: the 2026 deficit has nearly doubled from the earlier forecast to a record $88 billion, with more deficits planned for the next three years as Moscow raises taxes to fund the war and plans its biggest defense budget since the full-scale invasion began.
A default is a situation in which a company cannot make promised interest payments to investors on time or repay borrowed money. If a payment is not made by the agreed deadline, the company becomes delinquent, which under certain conditions is recognized as a default.
So far this year, 20 companies have defaulted for the first time, compared with 24 in all of 2025, said Mikhail Nikonov of the Expert RA rating agency. Most of the companies that missed payments are small issuers of high-yield bonds, Izvestia reported.
In 2026, Russian companies have missed payments totaling 41 billion rubles (about $490 million), compared with 34 billion rubles (about $410 million) the previous year, according to investment bank Sinara.
By the end of 2026, the number of Russian companies unable to service their ruble-denominated debt on time could reach 40–50, the highest level since 2010, said Pavel Zholobov, junior managing director at the NRA rating agency.
The number of bond defaults in 2026 has already reached its highest level in a decade, Zholobov said. Similar figures were recorded in the mid-2010s: in 2014, 35 companies missed payments; in 2015, 52 did so; and in 2016, there were 44 issuers. This occurred in part after Western sanctions were imposed on Russia over its annexation of Crimea and its war in Donbas, as well as amid a halving of oil prices and a sharp weakening of the ruble.
There were more defaults only in 2009. At the time, amid the fallout from the global financial crisis, more than 100 issuers faced payment problems, while the volume of distressed debt reached nearly 200 billion rubles, Zholobov noted.
This time, the main reason for companies' difficulties in making bond payments has been the prolonged period of high interest rates, which has continued since 2023. Companies are raising financing at high interest rates but are unable to refinance their debt on more favorable terms, explained Ekaterina Sidorova, head of the Foreign Exchange, Commodities and Debt Markets Department at SberCIB Investment Research.
At the same time, the situation does not yet resemble a systemic debt crisis: defaults are primarily being recorded among companies with low credit ratings and high debt burdens, Sidorova said.
If a company fails to repay bond debt, it is given 10 business days to meet its obligations. If it fails to do so, the company may offer investors a restructuring—for example, by postponing payments in exchange for a higher interest rate.
The number of defaults will remain high in 2027, Sidorova believes.
High interest rates were a response to accelerating inflation in Russia. Domestic demand was outpacing production, Russia's Central Bank said in October 2023. Sanctions over the war and rising defense spending had also hit the economy and the ruble, which had lost about 25% against the dollar that year. The bank raised its key rate from 7.5% in the first half of 2023 to 15% by the fall.
Ukraine is also seeking to weaken Russia's economy as part of efforts to reduce its ability to finance the war. In particular, Defense Minister Yevhenii Khmara said strikes on oil refineries are aimed at "bleeding the Russian war machine" and destroying its military and economic potential. According to the ministry, the attacks have knocked out more than 51% of Russia's oil refining capacity.
In the first half of July, Russian oil refineries processed about 3.9 million barrels of oil per day—the lowest level since March 2005. Due to the production cuts, Moscow was also forced to restrict fuel exports.
Ukrainian drugmakers could lose the certificates that let them sell in Uzbekistan, their most important export market, Ukrainian business outlet Ekonomichna Pravda reported on 7 October. Uzbekistan is ending remote factory inspections next year, and industry sources say its inspectors are wary of traveling to a country at war.
Russia's war keeps reshaping Central Asia's trade with both warring countries: Ukrainian refinery strikes pushed Russian fuel shortages into the region, and Kazakhstan gained leverage over a Russian retail giant.
Uzbekistan brings in about 30% of the Ukrainian drug industry's foreign-currency earnings, and one in 10 medicine packs sold there is Ukrainian, Ekonomichna Pravda wrote. By the outlet's count, at least three of Ukraine's five biggest drugmakers by revenue rank it as their top foreign market.
The currency from Uzbekistan lets manufacturers keep prices low in Ukraine and absorb losses from Russian strikes, three industry sources told Ekonomichna Pravda. Losing the market would force producers to raise domestic prices or pull low-margin medicines, which "will hit the Ukrainian patient," said Hennadii Vovk, former deputy head of Ukraine's State Service on Medicines and Drug Control.
Exports reached $114 million in January–June 2026, more than in all of 2021, said Yevheniia Piddubna, government relations head at Farmak, Ukraine's largest drugmaker. She said Uzbekistan takes 35% of Farmak's exports.
Data from the YouControl business registry, cited by the outlet, complicates that picture. In 2022, 30–35% of Farmak's products went to Uzbekistan. In 2025, Uzbekistan was not among its direct buyers. Farmak explained that wartime currency rules cap payment terms at 180 days, while foreign buyers often demand longer. So part of its trade runs through the group's Polish company.
Uzbekistan grants three-year certificates of good manufacturing practice (GMP) after inspecting the factory. Since the pandemic, it has allowed remote checks. That suited Ukraine, where Uzbek experts avoided traveling because of Russia's invasion, industry sources told the outlet. Remote inspections end on 1 January 2027.
Most Ukrainian certificates expire within a year. Farmak's runs out in November 2026, and the company may not manage to renew it in time. Three producers renewed under the old rules until 2029: Darnytsia, the Borshchahivskyi Chemical and Pharmaceutical Plant, and Farmex Group. According to Piddubna, Uzbekistan's regulator has drafted rules for remote inspections in force-majeure cases, but nothing has been put into practice. Industry sources said the Uzbek Presidential Administration must sign off.
Producers have asked the Office of the President, the Foreign Ministry, and the Health Ministry to raise the issue with Uzbekistan's government, but no Ukrainian experts have been sent there yet, the outlet reported. Russia, whose share of the Uzbek drug market is almost the same as Ukraine's, is ready to take Ukraine's place, its sources said.
The Middle East has seen many explosions of violence in recent years. But while the US-Iran war has grabbed the headlines this year, the rapidly escalating conflict between the Houthis and Yemen’s internationally recognized government and Saudi Arabia risks becoming just as consequential for the region. The complexity of Yemen’s internal conflict cannot be underestimated. […]
The post How Yemen’s renewed civil war could set the whole region ablaze appeared first on Asia Times.
The 2026 Asian Games in Japan drew to a close on October 4 following two weeks of competition between 45 countries and territories across 43 sports. Despite the official slogan “Imagine One Asia,” fragmented regional politics came to the fore as the event unfolded. Just days before the games officially began, tensions between Japan and […]
The post How geopolitical tensions tainted the 2026 Asian Games appeared first on Asia Times.
Germany is expanding drone detection at its airports with a new system operated by German air traffic control provider Deutsche Flugsicherung (DFS), the German Federal Ministry for Transport (BMV) announced on 5 October.
Germany has accused Russia of attempting a hybrid attack at Germany’s Leipzig/Halle Airport near a Ukrainian An-124 aircraft using a drone carrying explosives. Earlier, Finnish President Alexander Stubb said Europe must be prepared for “continued hybrid and sabotage attacks” by Russia, adding that Russia seeks to sow panic through such actions.
On Monday, two more sites were added—Stuttgart and Hamburg. As of Monday, seven of Germany’s eight largest airports were equipped with the new drone detection system in their approach and departure areas.
The Federal Ministry cited the reason for the new measure: drones near airports can affect air traffic very quickly.
Federal Transport Minister Steffen Bilger and Baden-Württemberg Transport Minister Nicole Razavi were briefed on the new system at Stuttgart Airport, where it is being put into operation, the ministry said. The system creates “an important technical basis for detecting potential threats at an early stage and quickly informing the competent authorities,” Bilger said.
“With today’s commissioning of the drone detection system at Stuttgart Airport, the federal government is fulfilling a key promise: it is not only talking about the dangers posed by unmanned aircraft, but is also following through with very concrete action. Protecting critical infrastructure and ensuring the safety of passengers at Stuttgart Airport require continuous adaptation to a changing security situation,” Razavi said, according to the ministry.
The new DFS system allows drones near airports to be detected at an early stage and information about possible threats to air traffic to be passed more quickly to the relevant authorities. This helps them assess risks and respond to them more quickly, the statement said.
DFS is responsible for detecting drones in approach and departure areas, while the Federal Police and other security services are responsible for preventing threats and defending against drones. The BMV, Federal Ministry of the Interior, DFS, Federal Police and airports coordinate their work to exchange information quickly and maintain a shared picture of the situation.
No further details about how the system operates have been disclosed.
The first stage of the expansion at Germany’s eight major commercial airports will be fully implemented this week, with the systems in Stuttgart and Hamburg being put into operation, the statement said.
The system will also be put into operation at Leipzig/Halle Airport this week, meaning that the first stage will be fully implemented at all eight of Germany’s largest commercial airports, according to the press release.
A quadcopter drone carrying a Semtex explosive flew directly toward a parked Ukrainian An-124 Ruslan cargo aircraft and struck its wing at Leipzig/Halle Airport in Germany on the evening of 4 August, Die Zeit reported on 10 August. The drone hit the aircraft at around 19:30 local time, bounced off the wing, and fell to the ground without detonating, according to the media outlet.
Germany has accused Russia of attempting the drone attack and announced further sanctions against Russian citizens and institutions, Tagesschau reported on 1 September.
At the crime scene, investigators found the drone configuration, explosives and detonation technology that had already appeared in other Russian hybrid operations and in Russia’s war against Ukraine, Federal Interior Minister Alexander Dobrindt said during a joint press conference with Federal Foreign Minister Johann Wadephul, the media outlet reported.
The German government assumes that Germany has been and will be a target of further such Russian attacks. Germany is not at war with Russia but is a “target of war,” Foreign Minister Wadephul said, according to the outlet.
A major fire was reported at the Volodarskaya linear production and dispatch station in Moscow region early on Tuesday, bringing Ukraine’s campaign against Russian fuel infrastructure to another important point in the capital’s supply network.
Footage published from the area around Konstantinovo showed a substantial blaze at the facility, with reports from local residents that storage tanks were burning. The material identified the site as the Volodarskaya station, operated by Transneft-Upper Volga and connected to the petroleum-products network serving the Moscow region.
The extent of the damage was not immediately clear. There had been no detailed assessment from Transneft by Tuesday morning establishing whether pumping equipment, pipelines or only storage facilities had been affected. This distinction will determine whether the attack produces a temporary disruption or a more significant problem for Moscow’s fuel distribution system.
The strike formed part of a large overnight drone attack on Moscow and surrounding districts. Moscow Mayor Sergei Sobyanin reported repeated interceptions of drones approaching the capital, while air-defence activity continued across Moscow region. Russian aviation authorities temporarily restricted operations at Vnukovo, Domodedovo, Sheremetyevo and Zhukovsky airports for flight-safety reasons.
There is no evidence at this stage that the airport restrictions resulted from fuel shortages. They were imposed during the drone attack itself. The longer-term significance of Volodarskaya lies instead in the station’s role within the pipeline and storage infrastructure serving the Russian capital.
Volodarskaya is connected to Moscow’s ring petroleum-products pipeline, through which petrol, diesel and aviation kerosene can be moved between refineries, storage facilities and major consumers.
Its importance is documented by Transneft itself. In 2024, the company said it had returned a 32-kilometre petroleum-products pipeline between the Moscow refinery and Volodarskaya to operation as part of a project to increase fuel deliveries across Moscow region.
According to the company’s figures, the project allowed aviation-fuel deliveries to Moscow’s airports to rise almost twofold, to as much as three million tonnes a year. Potential diesel deliveries to Moscow region consumers increased to 2.8 million tonnes annually, while petrol volumes reached 1.6 million tonnes. Transneft specifically identified Vnukovo, Domodedovo and Sheremetyevo as airports supplied through the expanded system.
Transneft has also expanded storage at Volodarskaya. The company previously said it had commissioned additional petroleum-product tanks at the station to support fuel supplies to Moscow and aviation-fuel transportation to the capital’s airports.
Those figures do not mean that every litre of fuel consumed by Moscow depends on Volodarskaya. Russia can move petroleum products by rail and road, and the Moscow region has other storage and distribution facilities. But replacing pipeline volumes on the scale handled by the Moscow system would place additional demands on those alternatives, particularly if disruption were prolonged.
The attack also follows repeated Ukrainian strikes against refining infrastructure supplying European Russia. On 20 September, EU Today reported that a mass drone attack had hit the Moscow Oil Refinery at Kapotnya, one of the main fuel-processing plants serving the capital. The strike reportedly affected its ELOU-AVT-6 primary processing unit, increasing pressure on a refinery that had already been targeted earlier in the year.
The broader campaign has moved beyond individual refineries. Ukraine has increasingly targeted different stages of Russia’s energy system, including storage depots, pumping infrastructure, ports and export terminals. Earlier attacks on the Omsk refinery and Baltic export infrastructure illustrated Kyiv’s effort to put pressure on both domestic fuel processing and the logistics through which Russian oil reaches international markets.
That approach is intended to force Russia to repair several parts of the system simultaneously rather than simply compensate for the temporary loss of production at one refinery. EU Today has previously examined how sustained strikes can put physical pressure on Russia’s oil economy where sanctions alone have limits.
President Volodymyr Zelenskyy said on 3 October that Ukraine intended to intensify attacks on Russian oil refineries in response to Moscow’s continuing strikes against Ukrainian cities, while maintaining that Ukrainian operations would not deliberately target civilians.
Volodarskaya adds another element to that campaign. A refinery converts crude oil into usable fuels; a pumping and storage station determines how those products reach consumers. Damaging one without the other may create disruption that can be bypassed. Sustained damage to both processing and distribution infrastructure is more difficult to compensate for.
Much therefore depends on what happened inside Volodarskaya overnight. If the damage is confined to several storage tanks, the Moscow fuel network may be able to absorb the loss. Damage to pumping installations or pipeline connections would have wider consequences, particularly if the facility is attacked repeatedly.
The strike nevertheless demonstrates that a fuel installation closely connected to Moscow’s aviation and transport system can be reached despite the dense air-defence network surrounding the capital. The scale of its effect will become clearer once satellite imagery and operational information show which parts of the Volodarskaya complex were actually damaged.
There are few sporting rivalries capable of transporting an entire stadium thousands of miles away from home. On Saturday, India and Pakistan managed precisely that — turning a modest Japanese baseball facility into an arena charged with all the anticipation, colour and emotion normally associated with the great cricket grounds of South Asia.
The setting could hardly have been more incongruous. The Asian Games final was being staged at Korogi Athletic Park in Nisshin, near Nagoya, a purpose-built cricket venue with capacity for only about 2,500 spectators. Beyond the boundary stood the unmistakable features of a Japanese baseball ground, including a pitcher’s mound.
Yet for those inside, this was no novelty fixture.
Hours before the first ball, Indian and Pakistani supporters were queuing to enter. Flags were draped over shoulders, shirts provided the national colours and tickets had become sufficiently scarce to generate reports of inflated resale prices. For many members of the South Asian communities living in Japan, the occasion represented a rare chance to see the two countries meet in person.
That matters because India-Pakistan cricket is not simply another international sporting contest. Political tensions mean that the teams generally encounter each other only in major tournaments, making every meeting an event in its own right. Their February T20 World Cup encounter in Sri Lanka was played before a sell-out crowd of 35,000; television audiences in the two countries routinely run into the hundreds of millions.
Japan therefore found itself hosting one of cricket’s most valuable commodities: scarcity.
For Japanese spectators, meanwhile, the spectacle offered an introduction to a sport that remains distinctly niche in the country. Some had attended earlier matches simply out of curiosity. Teachers from nearby Gifu admitted that they knew virtually nothing about cricket, but found themselves enjoying the experience after reading explanatory material and watching the action.
The comparison with baseball is inevitable. Japan possesses one of the world’s great baseball cultures, while cricket remains a relative outsider. But the recent arrival of India has provided an intriguing bridge between the two.
Last week, Japan played India in its first-ever T20 international against a full-member cricket nation. The hosts came within two runs of a remarkable victory in a rain-shortened five-over contest, giving Japanese cricket precisely the sort of exposure its administrators could scarcely have manufactured themselves.
The significance extends beyond the scoreboard.
India’s appearance in Japan was linked to the 75th anniversary of diplomatic relations between the countries, while the Asian Games have provided an unusually prominent platform for cricket. The sport is already established among expatriate communities, but encounters involving India’s global stars can introduce it to an entirely new audience.
That is perhaps the most interesting aspect of Saturday’s extraordinary scene. Cricket did not need to conquer Japan overnight. It merely needed to persuade a few thousand people to come and watch.
And India versus Pakistan is perhaps the ultimate sales pitch.
The match was always going to generate passion. What nobody could have guaranteed was that the passion would survive the journey from the packed stadiums of Colombo and Mumbai to a small baseball field outside Nagoya.
It did.
The geography changed. The rivalry did not.
The war between the United States and Iran is no longer just a confrontation between Washington and Tehran. A second contest is taking shape alongside and behind it. China is not fighting the United States directly, but its economic, technological and diplomatic links to Iran are complicating Washington’s strategy and ability to win the conflict. […]
The post The China factor behind the Iran war appeared first on Asia Times.
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