Energy

Yesterday on Thursday (10 August), Armenia and Iran signed an agreement to extend an energy swap deal for another for years and increase its volumes. Armenian Minister of Territorial Administration and Infrastructure Gnel Sanosian said that the extension of the agreement is "one of the best manifestations of Armenian-Iranian friendly relations", adding that "the extension of the agreement is a profitable deal for both countries."

Alarm is growing in Ukraine over the fate of the Zaporizhzhia Nuclear Power Plant (NPP), which has been under Russian control since the opening weeks of Russia's full-scale invasion of Ukraine in February last year. In his nightly address on Tuesday (4 July), Ukrainian President Volodymyr Zelensky warned that Russia is "preparing a provocation" at the Zaporizhzhia NPP. Citing Ukrainian intelligence, President Zelensky said that Russia has placed explosives on the roof of two power units, raising concerns that Russia could deliberately damage the power plant under their control to hinder Ukraine's ongoing counteroffensive. The General Staff of Ukraine's Armed Forces also reported that Russia is preparing a strike "in the near future", adding that "their detonation should not damage power units but may create a picture of shelling by Ukraine's military". Zelensky also said that "now the whole world must realise that common security depends entirely on global attention to the occupiers' actions at the station". Earlier on 20 June, citing intelligence, President Zelensky also warned that Russia was considering attacking the NPP through radiation leakage.

The group of oil producing countries, OPEC+, has pledged oil output cuts amid flagging global oil prices. Following the announcement made on Sunday (4 June) after a meeting of OPEC+ in Vienna, Brent crude oil rose by as much as 2.4% before settling at around $77 a barrel in Asia trading on Monday. In accordance with the agreement struck, Saudi Arabia announced that they would cut daily barrel production from 10 million barrels per day (bpd) to 9 million bpd in July, as well as extending their volunatary cut in oil production of 500,000 bpd until December 2024. Russia's 2023 quota currently stands at around 10.5 million bpd, but in 2024 will reduce to approximately 9.3 million bpd, consisting of a reduction of 650,000 barrels per day as well as the voluntary cut of 500,000 bpd. Brent crude oil rose by as much as 2.4% before settling at around $77 a barrel. Global oil prices spiked following Russia's full-scale invasion of Ukraine in February 2022. Since then, however, prices have fallen to pre-February 2022 levels. In an attempt to shore up global oil markets, OPEC+ have announced a couple of rounds of cuts in oil production. In October 2022, OPEC+ agreed to cut production by two million bpd, about 2% of global demand.

Economic projects can help the normalisation Armenia-Azerbaijan relations, but this should also include co-operation at the regional level, says Benyamin Poghosyan in this op-ed for commonspace.eu. He adds, "Armenia has strong potential to become an exporter of renewable energy to the EU. The participation of Armenia in the Black Sea Energy submarine cable project will contribute to the country’s economic development. It will boost regional economic cooperation, which is much needed to foster stability and security in the South Caucasus. It will strengthen the EU’s position and role in the region and is fully in line with overall EU strategy toward the South Caucasus".