Caspian contagion risks
A banking crisis is a short-term risk in a region bursting with energy developments
A banking crisis in Azerbaijan and Kazakhstan has put a renewed onus on the oil and gas sector as both Caspian economies struggle to deal with the fallout from a slowdown in neighbouring Russia and China. Analysts fear the banking problems of the two economies—still reeling from a decline in commodity prices and currency devaluations—may spread, affecting big capital-spending plans aimed at arresting declining oil production. A default by the International Bank of Azerbaijan (IBA) in May sent shockwaves across the Caspian after the country's largest lender said it was seeking a write-down as part of a $3.3bn restructuring. Kazakhstan, which is undertaking yet another painful restructuring of
Also in this section
19 March 2026
The regional crisis highlights the undervalued role of fixed pipelines in the age of tanker flexibility
18 March 2026
Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG
18 March 2026
Risks of shortages in oil products may cause world leaders to panic and make mistakes instead of letting the market do what it does best
17 March 2026
The crisis in the Middle East has put LNG’s ability to offer security and flexibility under uncomfortable scrutiny
