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
28 March 2024
As a gas supply shortfall looms, balancing regulatory flexibility with energy security and investor confidence will be critical
27 March 2024
Oil producers have to untangle the increasingly complicated relationship with their natural resources
26 March 2024
Strategic stocks have become as much a market management tool as a security of supply buffer, and this new tactic is likely to continue beyond the next election
25 March 2024
Low carbon intensity and sizeable projects such as Johan Castberg coming onstream in late 2024 suggest a robust outlook at least until 2030