When you think about which companies have large oil and gas reserves? You likely said countries in the Middle East, the US, Canada, Venezuela, and Russia. Of those countries, the only one that is at war is Russia. The Ukraine Russia conflict has lasted over 3 years and there are few signs it will stop.

Originally, Russia had the better conventional weapons and given it is bigger than the Ukraine, it had more soldiers to go to the battle fields. Then something changed, how war is fought has changed forever. Both Ukraine and Russia have drones, and Ukraine is getting better every year.

The Ukraine’s drone are targeting oil and gas infrastructure to ensure the average Russian sees the pain of the war. For given Russia’s oil and gas reserves, selling the oil and gas helps ensures the stability of the Russian economy. However, when Ukraine hits Russian oil refineries, shortages of output including gasoline happen.

In an article from Reuters, Russia needed to buy or import gasoline from India. Two tankers with 30,000 to 40,000 tons have been sent by India to Russia. Russia is buying up to 400,000 tons of gasoline from India and Belarus.

Gasoline consumption in Russia is at least 110,000 tons a day in the summer.

Belarus has tripled gasoline rail supplies to Russia to more than 70,000 tons in the first half of the June compared to the first half of May.

Russia’s oil accounted for more than half of India’s overall imports in June, up from 36.5% in May.

Recent reports suggest that 40% of Russia’s oil refinery infrastructure is down.

Linking to dividend paying stocks, infrastructure is a key driver in investments and how to see the world is doing. Russia has one of the largest oil and gas reserves in the world, but Ukraine closes refineries which means there is a shortage of gasoline and long lines for consumers. Keeping your eyes on infrastructure is a good thing.

There are more questions than answers, till the next time – to raising questions.