Iran has demanded compensation from Ukraine over a deadly strike on a cargo vessel in the Caspian Sea, rejecting Kyiv's claim that the attack was accidental. One sailor was killed when the vessel was struck last month, with Tehran calling the incident reckless. Ukrainian officials initially defended the operation before describing it as a mistake and denying any desire for escalation with Iran. Tehran says Ukraine has failed to resolve the matter and warns it will pursue compensation itself if Kyiv refuses. The dispute comes amid wider tensions over Iran's alleged drone support for Russia and Ukraine's growing involvement in the Middle East conflict.
Russia has unveiled Volna Kupol Garant, an electronic warfare system it claims can disrupt Starlink communications by targeting satellites instead of ground terminals. Russian officials say the system uses concentrated radio signals to overload receiving antennas aboard Starlink satellites, temporarily preventing them from serving terminals below. The reported system can allegedly interfere across multiple Starlink transmission bands and create a jamming zone covering up to 20 square kilometres. Its large antenna array could also make it vulnerable to detection, though the technology has not been independently verified and there are no confirmed reports of battlefield deployment, raising questions over its real-world effectiveness.
Ukraine faces a significant setback as Elon Musk reportedly continues to reject Kyiv's request to expand the use of Starlink for military operations against targets inside Russian territory, according to The Atlantic. The dispute has reportedly reached the highest political levels, with Ukrainian President Volodymyr Zelensky said to have urged U.S. President Donald Trump to intervene with Musk and SpaceX. While Starlink remains available across Ukrainian-controlled areas, including regions occupied by Russia, restrictions reportedly remain on its use inside Russia. This development comes as Ukraine continues its military operations against Russian targets, with the growing strategic importance of Starlink highlighting the communications challenges facing Ukrainian forces.
Ukraine's military claimed another drone attack on Orsknefteorgsintez oil refinery in Russia's Orenburg region on Tuesday morning, according to Oilprice.com. The Orsk refinery has an annual capacity to process about 6 million tons of crude oil and produces gasoline, diesel, aviation fuel, fuel oil, bitumen, and other petroleum products. The Ukrainian military stated on its Telegram channel that "fire was recorded. Damages are being ascertained," with the attack occurring about 1,500 kilometers (930 miles) from the frontline. This latest strike follows a wave of successful Ukrainian operations, including a massive attack earlier this week that killed 12 people and wounded at least 39 in Russia's Tatarstan region, which also hit Tatneft's technologically advanced Taneco refinery. The Ukrainian General Staff announced it will "continue to systematically implement measures aimed at stopping the armed aggression of the Russian Federation."
Russia has begun importing gasoline from India for the first time, as Ukrainian attacks on Russian refineries create severe domestic fuel shortages. According to Kpler data, the first shipment arrived on August 5, with more potentially on the way. The lengthy journey required indicates the severity of the domestic fuel crunch. Indian processor Nayara Energy Ltd., backed by Rosneft PJSC, Russia's top oil producer, has emerged as the source of this fuel, which is being transported via a chain of Russian-linked tankers through transfers off Egypt. As reported by Reuters, Russia's July 2026 budget revenues from oil and gas were expected to rise by 60 percent compared with revenues a year earlier, though this growth reflects the difficult economic situation arising from infrastructure losses rather than normal market conditions.
Following a wave of attacks, EA Analytics estimated that Russia's crude-processing rates were running at 3.6 million barrels a day in July, approximately a third below the seasonal norm. Since then, Kyiv has intensified strikes, hitting five processors last week and at least two more this week. The combined disruptions have tightened fuel markets, with Moscow banning both gasoline and diesel exports to prioritize local users. According to Bruegel think tank expert Marek Dabrowski's assessment, in the first half of 2026 Russia's revenues from oil and gas exports were about RUB 3.7 trillion (EUR 40 billion) – that is, RUB 1 trillion (EUR 10 billion) less than in the first half of 2025 (RUB 4.7 trillion, or EUR 50 billion). At least 26 Russian facilities have been knocked offline this year, with only eight refineries returning to full operation by late July.
"The emergence of Indian barrels is particularly notable," said Sumit Ritolia, lead analyst at Kpler. The cargoes, which complement continued imports from Belarus and other neighboring markets, highlight "the severity of the current domestic gasoline imbalance, and the extent to which lower refinery runs are reshaping Russia's traditional product trade flows." Russian-flagged products tanker Cyclone loaded a 42,000-ton gasoline cargo from Vadinar on June 18, which was transferred to the Oman-flagged Garnet at Damietta Port on July 6. To compensate for domestic shortages, Belarusian gasoline and diesel supplies reached a new monthly record in July, with rail shipments surging 25-fold compared to the same period in 2025, reaching nearly 665,000 metric tons over the first seven months of the year.
