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A well-known Russian city, Nizhny Novgorod, is incredibly famous for its place on the energy map as the location for the largest energy production and refinery for both local consumption and for exports to Europe. But the energy history has suddenly changed in early July 2026, primarily due to unexpected attacks by Ukrainian drones. The Ukrainian drone attacks, described in official reports, have left an indelible devastating mark on Lukoil-Nizhegorodnefteorgsitez (Norsi), considered the largest oil refinery of the Lukoil corporation in Kstovo (Nizhny Novgorod region), and had to suspend its routine refinery operations.

Reuters reported this serious military-related incident on July 3, citing two sources in Russia’s oil industry. According to The Moscow Times, a reputable foreign media outlet, the drone attack damaged the plant’s main primary processing unit, AVT-6, which provided 53% of the Norsi refinery’s capacity. Another unit, AVT-5, which accounts for 25% of the plant’s capacity, was disabled by a drone on June 24. As of July 2, Norsi (Russia’s fourth largest oil refinery and the second largest gasoline producer) stopped selling wholesale quantities of gasoline and diesel fuel on the St. Petersburg Commodity and Raw Materials Exchange.

As The Moscow Times reports, Norsi, which has an annual capacity to process 15 million tons of oil and produce 5 million tons of gasoline, became the fifth Russian refinery to halt production since the beginning of June. Gazprom Neft’s Moscow refinery ceased refining on June 16, with repairs, according to Reuters sources, potentially lasting until 2027. Tatneft’s Taneco refinery in Nizhnekamsk has been idled since June 12; the Kuibyshev refinery, since June 10; and the Volgograd refinery, since June 1.

Moreover, the authorities of the aggressor country will likely be unable to increase the capacity of Russian oil refineries damaged by BP-LA strikes in the coming month, local Russian media Kommersant reported. According to its source, refining volumes in July will “at best” remain at June levels, and only if there are no further attacks at the refineries.

Ukrainian Defense Forces attacked the Kstovo oil refinery on May 18 and 20, 2026. As a result of the repeated attacks, the AVT-6 primary oil refining unit was damaged, after which the refinery suspended operations.

On July 2, Sergei Sternenko, advisor to Ukrainian Defense Minister Mykhailo Fedorov, reported that drones had again attacked the Kstovsky refinery of Lukoil-Nizhegorodnefteorgsintez, and a major fire had broken out at the plant. Later that same day, the General Staff of the Armed Forces of Ukraine confirmed that the strike on the Kstovsky Oil Refinery was carried out by the Defense Forces, as a result of which the AVT-6 primary oil refinery unit was damaged. Ukrainian officers noted that this oil refinery is one of the largest in Russia and has a design capacity of about 17 million tons of oil per year.

Reports also circulated this early July that Russia has turned to fuel imports from India after Ukrainian strikes disrupted its refineries, a rare reversal for one of the world’s biggest fuel exporters that could bring African oil giants into focus if Moscow widens its search for alternative suppliers. The reports further indicated Russia to likely seek imports from Belarus, with which it has a strategic partnership, and both formed the Russia-Belarus Union. Moscow and Minsk have been working together productively in all areas, coordinating their efforts in countering external threats and coordinating challenges through various institutions of the Russia-Belarus Union.

But for African oil producers, such as Algeria, Angola, Libya, Nigeria, and Egypt, Russia’s fuel crisis could open a new window for countries with active refineries, as global markets seek more secure supplies after US-Iran tensions and disruptions around the Strait of Hormuz reshaped fuel trade. That possibility has gained attention because Russia is now turning to foreign imports to ease domestic shortages.

Meanwhile, Russia has not traditionally depended on African crude oil, but its worsening fuel shortages could make Africa’s oil producers and refiners more strategically important as Moscow seeks supply through direct purchases or alternative refinery routes, while sanctions pressure complicates access to Venezuela and Iranian oil networks.

India is the fourth-largest oil refiner in the world. Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri said at a press conference held on July 2 that India was ready to support Russia with oil and gas supply. “We could potentially supply fuel to Russia if needed,” the minister said, explaining it depends on how the situation develops. 

Russian Deputy Prime Minister Alexander Novak told TASS that Russia had sufficient fuel reserves to supply the domestic market, but the stir around the situation with gasoline had led to a demand increase of approximately 20-30%. However, he added, “the system’s logistics connections are currently being restructured to meet needs,” and this will take some time. He also stated that he could restrict exporting diesel to manufacturers “to further fill the domestic market.”

As Kremlin spokesman Dmitry Peskov stated on June 30, if Russia can reach cost-effective deals to import fuel, that could help stabilize the market. However, Peskov added that the Kremlin will not disclose which countries it is in contact with regarding possible fuel imports.

In the meantime, Russia has taken a few steps to control the situation. The government has already reduced the mandatory sales of gasoline on the exchange trading from 15% to 10% of the volume. The Kremlin’s presidential decree has been signed, aimed at stabilizing the domestic petroleum product market. Interfax sources explained that the gasoline volumes freed up by the measure would be used to supply agricultural producers and socially significant consumers. While Russia makes no request for fuel from Kazakhstan, Orenburg processing plants are receiving 28% of usual gas from Kazakhstan. In addition, Bashkortostan’s oil refineries are boosting output, owing to unprecedented emergency demand of fuel, and this is stabilizing the situational challenge.

Ukrainian drones have attacked many cities, including Tver, Tula, Smolensk, Kaluga, Belgorod, Bryansk, Kursk, Rostov, Krasnodar, and Moscow regions, as well as the republic of Crimea and the Sea of Azov and the Black Seas.

May 28 (UPI) — South Korea overtook the United States in 2025 to become the world’s second-largest exporter of cosmetics, according to the Ministry of Food and Drug Safety (MFDS) earlier this month.

The ministry noted that the East Asian country’s cosmetics exports amounted to $11.4 billion in 2025, up 11.8% from a year before, trailing only runaway leader France with $24.3 billion.

The United States ranked third with $10.8 billion, followed by Germany with $9.9 billion, Spain with $9.2 billion, Italy with $9 billion, China with $7.3 billion, and Japan with $3.9 billion.

Meanwhile, South Korea’s 2025 cosmetics imports declined 2.3% year-on-year to $1.29 billion, resulting in a trade surplus of $10.1 billion. It marked the first time Asia’s fourth-largest economy topped $10 billion in the annual cosmetics trade surplus.

By destination, the United States has emerged as the largest overseas market for Korean cosmetics last year as exports jumped 15% year-over-year to $2.2 billion. In contrast, shipments to China plunged 19% to $2 billion.

Demand for Korean cosmetics, widely known as K-beauty products, also increased sharply in Europe and the Middle East. Exports to Poland, in particular, more than doubled from a year earlier to $282 million.

To further beef up the competitiveness of the K-beauty industry, the MFDS pledged to pursue a range of policy initiatives, including expanded regulatory support programs.

“As countries such as the United States and China have recently introduced cosmetic safety assessment systems, we are preparing to implement our own safety evaluation framework in phases,” the MFDS said in a statement.

“To help domestic companies comply smoothly with the new system, the government plans to establish guidelines, provide consulting services, and train professional evaluators,” it added.

New players fueling K-beauty boom

In the past, South Korea’s cosmetics giants relied heavily on China as their primary offshore market. Traditional behemoths, including AmorePacific and LG Household and Health Care, resorted to such a business model for years.

However, a new wave of entrepreneurs has come to the fore with a different approach, reducing dependence on China while tapping aggressively into the United States, Europe, and Southeast Asia.

Leading the shift is APR, which was founded in 2014 and built its growth around online sales channels and beauty devices aimed at international customers.

Last year, APR almost tripled its operating profit to $240 million, which is almost equivalent to that of AmorePacific and well above $113 million of LG Household & Health Care.

APR continued its strong momentum this year as its first-quarter operating profit stood at $101 million, up 173.7% from a year ago, based on robust performance in such major markets as the United States and Japan.

According to U.S. business tracker Navigo Marketing, APR came in third place in Amazon’s beauty category last year with a 7.1% market share. The firm doubled it to 14.1% in the first quarter to claim the top position.

APR has also strengthened its offline presence by entering more than 1,500 Target stores across the United States last month. It plans to expand further into about 3,000 Walmart stores in June.

Meanwhile, first-quarter operating incomes of AmorePacific and LG Household and Health Care fell short of APR with $84 million and $72 million, respectively.

The strong earnings have prompted investors to pile into APR shares on the Seoul bourse.

As a result, APR’s market capitalization jumped 73.59% this year to reach $10 billion as of Thursday. Those of AmorePacific and LG Household & Health Care were $4.49 billion and $2.52 billion, respectively.

“Considering the expansion of offline channels in the United States and accelerating sales growth in Europe, APR’s stock is likely to maintain a medium- to long-term upward trajectory,” Yuanta Securities Korea analyst Lee Seung-eun said in a report.

HMC Investment Securities analyst Ha Hee-ji shared a similar view.

“APR’s growing brand recognition in the United States appears to be spreading across global markets, thus creating a virtuous cycle,” Ha said. “Business-to-business sales in Europe, Latin America, and the Middle East are also showing steep growth trends.”

Modern warfare has dramatically changed as we have seen from the Russia-Ukraine war, conflicts involving Gaza, India and Pakistan, and the recent US-Israeli strikes on Iran. At the centre of this shift is a surging global reliance on drone and missile technology as well as advanced air defence systems.

Turkiye, one of the largest military powers in the Middle East, is increasingly positioning itself as a major supplier in the global defence sector. Central to this effort is Roketsan, a company founded in 1988 to supply the Turkish Armed Forces, which has since evolved into the country’s primary manufacturer of missile and rocket systems.

Currently exporting to approximately 50 countries, the firm is one of the fastest-growing defence companies globally.

So how did Roketsan secure a large share of the global arms trade?

Bypassing Western embargoes

Turkiye’s defence expansion was largely accelerated by restrictions placed upon it. Western embargoes aimed at halting its military advancement meant Ankara could not acquire the necessary technical systems or components.

In 2020, the United States imposed Countering America’s Adversaries Through Sanctions Act (CAATSA) restrictions on Turkiye – a key member of the transatlantic military alliance NATO. These sanctions targeted Turkiye’s military procurement agency, its chief Ismail Demir, and three other senior officials. Washington also ejected Ankara from the F-35 stealth jet programme in July 2019.

The measures came after Ankara purchased Russia’s S-400 missile defence system, which was seen as a potential threat to NATO security. The European Union also prepared limited sanctions and discussed restricting arms exports following energy exploration disputes in the Eastern Mediterranean.

To circumvent this, the country built an integrated, domestic defence ecosystem. Today, Turkiye relies on a vast supply chain of nearly 4,000 small and medium-sized enterprises (SMEs) scattered across the country. As a result, the Turkish defence industry now operates with a local production rate exceeding 90 percent.

This shift has yielded significant financial returns for Ankara. In 2025, Turkiye’s defence industry reported $10bn in exports. Roketsan’s General Manager Murat Ikinci told Al Jazeera that the company currently ranks 71st among global defence firms, with ambitions to break into the top 50, then the top 20, and ultimately the top 10.

To support this expansion, Turkish President Recep Tayyip Erdogan inaugurated several large-scale facilities last week, including:

• Europe’s largest warhead facility.
• new research and development (R&D) centre housing 1,000 engineers.
• the “Kirikkale” facility dedicated to rocket fuel technology.
• new infrastructure for the mass production of ballistic and cruise missiles.

These projects represent a $1bn investment, with the company planning to inject an additional $2bn to expand mass production capabilities.

The ‘Tayfun’ and modern warfare

Roketsan’s R&D strategy – which employs 3,200 engineers and makes the company the third-largest R&D institution in Turkiye – is heavily influenced by data gathered from ongoing global conflicts.

According to Ikinci, the war in Ukraine highlighted the impact of cheap, first-person view (FPV) and kamikaze drones supported by artificial intelligence. In response, Roketsan developed air defence systems like “ALKA” and “BURC,” alongside the “CIRIT” laser-guided missile.

The regional landscape was further complicated during the US-Israel war on Iran, as cheap Iranian-designed Shahed drones – recently upgraded by Russia with “Kometa-B” anti-jamming modules – overwhelmed defences and even struck a British base in Cyprus in March 2026. During the same month, NATO air defences were forced to intercept three Iranian ballistic missiles that entered Turkish airspace.

Meanwhile, the recent conflict between Israel and Iran showcased the use of complex attacks combining ballistic missiles with “swarms” of kamikaze drones designed to overwhelm air defences. This environment makes hypersonic technology a critical asset.

This brings the Tayfun (Typhoon) project into focus. Tayfun is a developing family of long-range ballistic missiles. Its most advanced iteration, the Tayfun Block 4, is a hypersonic missile engineered to penetrate advanced air defence systems by travelling at extreme speeds.

When Al Jazeera asked for specific details regarding the Tayfun’s exact operational range, Ikinci was elusive. “We avoid mentioning its range; we just say its range is sufficient,” he noted.

Similarly, historical Western sanctions have pushed Turkiye to form new cooperation initiatives, effectively accelerating an “Eastern shift” away from Western defence dependence. Turkish drones are now being used by a growing number of countries, including by Pakistan during its war against India last May.

Based on these threat assessments, Roketsan has prioritised five key areas of production:

1. long-range ballistic and cruise missiles.
2. air defence systems, including the “Steel Dome”, Hisar-A, Hisar-O, and Siper.
3. submarine-launched cruise missiles, utilising the AKYA system to leverage Turkiye’s large submarine fleet.
4. smart micro-munitions designed specifically for armed drones.
5. long-range air-to-air missiles, a need highlighted by the brief India-Pakistan skirmish.

A strategic export model

Unlike traditional arms procurement, Turkiye is marketing its defence industry to international buyers as a strategic partnership.

“Our offer to our partners… is as follows: Let’s produce together, let’s develop technology together,” Ikinci stated.

By establishing joint facilities and R&D centres in allied nations across the Middle East, the Far East, and Europe, Turkiye is attempting to secure long-term geopolitical alliances rather than purely transactional sales. Ikinci highlighted Qatar as a prime example of this model, describing it as a benchmark for technological, military, and security cooperation in the region.

Filling the global stockpile gap

This rapid expansion comes at a critical time for the global arms trade. Ongoing wars have severely depleted the stockpiles of advanced weapon systems worldwide.

During the recent US-Israel war on Iran, Washington relied heavily on multimillion-dollar Patriot and Terminal High Altitude Area Defense (THAAD) systems to intercept cheap Iranian drones targeting US assets across Qatar, Kuwait, Bahrain, Saudi Arabia, and the United Arab Emirates. With growing concerns that US interceptor supplies could run low, Gulf states – which have collectively detected over 1,000 drones in their airspace – are actively seeking alternative defence technologies, creating a highly lucrative opening for Turkiye’s missile industry.

Defence analyses indicate that even military superpowers like the US will require significant time to replenish their current air defence inventories due to the complexity and massive infrastructure required to build them.

Turkish defence officials view this shortage as a strategic opening. Having localised its supply chain, Turkiye claims it can manufacture and export these highly sought-after complex systems independently.

As global demand for air defence and ballistic technologies rises, Roketsan is aggressively reinvesting its revenues into production infrastructure to expand its footprint in the international arms market.