SOVEREIGN ECONOMY: TOP EVENTS OF THE WEEK
Prime Minister Mikhail Mishustin, leading a delegation of officials and businessmen, attended the Russian-Chinese business forum in Shanghai. He stated that Russia considers a partnership with China in energy as an unconditional priority. As in international politics, the Kremlin is actively increasing its dependence on China in the economy and becoming its junior partner.
Leaders of the G7 member countries issued a joint statement saying that the restrictions they imposed on the price of Russian oil are yielding positive results. Since the coalition that launched the initiative accounts for about 90% of the marine insurance market, this approach has proven its effectiveness. Firstly, Russian oil continues to enter the global market, supporting its stability. Secondly, its price has significantly decreased, which has reduced revenues for the Russian budget.
European gas exchange prices have dropped below $300 per thousand cubic meters for the first time in two years. The June’s futures on the TTF index of the London ICE exchange reached $296 per thousand cubic meters on Thursday, May 25. An important factor in the price decrease was the announcement by the European Commission of a tender for joint gas procurement by EU countries from reliable international suppliers as part of the strategy for a gradual phase-out of Russian gas.
Finnish state company Gasum announced the termination of a long-term contract for pipeline gas supply with Gazprom Export LLC. Gasum rejected the conditions of the new payment system for Russian gas (with automatic conversion to rubles) in May 2022, in response to which Gazprom stopped the supplies. Gasum initiated arbitration proceedings after that case.
Russia, which has found itself in international isolation, is trying to attract tourists from Iran. The Russian Ministry of Economic Development and the Iranian Ministry of Cultural Heritage, Tourism, and Handicrafts signed a memorandum of cooperation in tourism during the International Economic Forum "Russia - Islamic World: KazanForum-2023."