Russia: drone attacks & "unscheduled repairs at oil refineries"

Good morning from Moscow.It's Wednesday, the 17th of June.In a moment, the new world order, as seen from Moscow.And what books are this morning's papers trying to sell you?First, what the Russian newspapers are saying about the economy.And today's Nezavisimaya Gazeta reports that in the first quarter of 2026, compared to last year, regional health care spending fell by 6 .4 percent.

What's more, at the start of the year, almost two thirds of Russian regions had a budget deficit.Today, 56 Russian regions do not have enough income to cover their expenses.In the first quarter of last year, only 46 regions were running budget deficits.The paper also reports that there is a housing affordability crisis in the country.The current model, which involves a combination of preferential mortgages and market supply, has exhausted its resources.Kommersant reports that shares in Russian oil companies fell to their lowest in several years.

The decline in global oil prices and the threat of renewed US sanctions on the 16th of June caused Russian oil stocks to fall by up to 7 percent, in some cases to their lowest price since 2022 and 2023.As well as external factors, there are domestic ones, the problems of individual enterprises and the strong ruble.Now, listen to the next sentence.It tells us a lot, I think, about Russia's attitude to a US -Iran deal to end their conflict.Experts remain cautiously optimistic and note that the outcome of the conflict in the Middle East is not predetermined.And in the event of a new escalation, we could expect a partial recovery of share prices.

As some concrete examples here, shares in TATNEFT fell almost 7 percent in a day, LUKOIL and Rosneft 5 percent.Now, this isn't just the result of fallingglobal oil prices.Investors reacted negatively to the decision by Tatneft to restrict the sale of petrol and diesel at petrol stations from June.A financial analyst tells the paper that petrol shortages in some Russian regions are making investors fear that similar measures may spread to other companies, which will negatively affect their financial performance.Reports of unscheduled repairs at Russian oil refineries are putting pressure on stock prices in the oil industry.

That phrase, unscheduled repairs, that is code for Ukrainian drone attacks on Russian oil facilities, saying it without actually saying it.Yesterday, there was a Ukrainian drone attack on a Moscow oil refinery.Moskovsky Komsomolets today doesn't mention that particular strike, but it does report that the night of June 15 -16 was a tough one for the Moscow region, which came under serious attack by Ukrainian drones, shattering windows in blocks of flats and burning roofs.Six people were injured.Also this claim.In its strikes on the Moscow region, for the first time the Ukrainian army used advanced drones.

The enemy could overcome the difficult weather conditions.Some of the drones flew in rain.And more on the economy here.There are indeed problems with the federal budget.The jump in oil and gas revenues in May due to the crisis in the Middle East is only temporary and offers little support.Its effect is quickly eaten away by the strong ruble oil discounts and logistics vulnerabilities.

In the first five months of 2026, revenues of the oil sector still fell by 30 percent.Now, if you're looking for literature, well, I'm not sure whether this book selection in the Ultra Pro Kremlin comes from Oscar Wilde.is holiday reading.What have we got here?A book on Soviet double agent Kim Philby, Soviet military intelligence, SMERSH, which means Death to Spies, that was Stalin's counterintelligence force, a little book about Stalin, and about the Special Military Operation, Russia's war on Ukraine.In the Russian government paper, lots about the FIFA World Cup.

Russians may be barred from the tournament, but they are following it.The matches are being shown here on TV.And from the World Cup to the new world order, the paper comes up with a name for it.The new disharmonious world in the disharmonious world.No one knows what's allowed and what isn't.Everything happens by trial and error.

And Trump is the trailblazer for this disharmonious world.He's constantly experimenting.In 2026, we've already seen two of these experiments, in Caracas and in the Gulf.Next up, it looks like he'll be experimenting with Cuba.And finally, back to Moskovsky, Komsomolets, and to the jokes section, where we learn there are two reasons we don't trust people.One, because we don't know them.

Two, because we do.