DATA & FIGURES
The International Energy Agency reported that Russia produced 8.74 million barrels per day of oil last month, versus 8.96 million bpd in April, approximately 100,000 barrels below target. The European Union released 6 billion euros ($6.9bn) in military aid from its European Peace Facility. Ukraine garnered 4 billion euros ($4.6bn) in new military aid commitments from its allies. Russia's defence spending was up 30 percent in the first quarter, compared with the same period last year.
THE SCENARIO
The Russia-Ukraine war has entered a new phase, with Ukraine increasing strikes on Russian oil and weapons infrastructure. The war is having a significant impact on the global economy, particularly in the energy sector.
DIRECT QUOTE
"Ukraine has earned the right to move faster … We are ready to open all clusters. We have done our work. Everyone in Europe knows this." — Volodymyr Zelenskyy, President of Ukraine
BBN INSIGHT
The ongoing conflict between Russia and Ukraine is having a profound impact on the global economy, particularly in the energy sector. The significant decrease in Russian oil production and the subsequent fuel rationing in Russia are clear indications of the war's economic effects.