Iran has partially suspended production at the South Pars gas field — the world’s largest — after an Israeli airstrike triggered a fire at the site, the semi-official Tasnim news agency reported on June 14, according to Reuters. If confirmed, it would mark the first Israeli strike targeting Iran’s vital oil and gas infrastructure.

The South Pars field, located offshore in southern Bushehr province, is responsible for the bulk of Iran’s gas output. Tehran shares the field with Qatar, which refers to its portion as the North Field. A strike on South Pars represents a significant escalation, coming after oil prices surged 9% on June 13 following Israel’s initial wave of attacks, which had not targeted energy infrastructure, Reuters reports.

Israel launched its air offensive against Iran on June 13, killing commanders and scientists and bombing nuclear sites, in what it described as an effort to prevent Tehran from developing nuclear weapons.

The Iranian oil ministry said the fire caused by the strike has been extinguished. According to Tasnim, the fire broke out in one of four units of Phase 14 at South Pars, halting the production of 12 million cubic meters of gas.

Iran, the world’s third-largest gas producer after the United States and Russia, produces around 275 billion cubic meters of gas per year, about 6.5% of global output.

Due to international sanctions, the country consumes most of this domestically. Qatar, which operates the majority of the shared field with support from global firms such as Exxon and Shell, produces 77 million tonnes of liquefied natural gas annually, supplying both European and Asian markets.

Israel-Iran war could provide economic boost Russia needs to continue fight against Ukraine

Israel’s “preemptive” strikes against Iran targeting the country’s nuclear program and killing top military officials could have far-reaching implications for Ukraine and could boost Russia’s ability to continue its full-scale invasion, experts have told the Kyiv Independent. Iran has been one of Russia’s staunchest allies throughout the war, providing thousands

The Kyiv IndependentChris York

The EU and Germany have topped up Ukraine’s Energy Efficiency Fund (EEF) with an additional 18 million euros ($20.7 million) to expand their support for Ukraine’s energy independence and green recovery, the EU Delegation to Ukraine said on June 11.

The move was announced at the 10th meeting of the delegation's Coordination Council in Kyiv.

The EU provided 13 million euros ($15 million) of the new funding, while Germany's International Climate Initiative (IKI) provided 5 million euros ($5.7 million).

The International Finance Corporation (IFC), the investment arm of the World Bank, will continue to manage the EEF’s trust fund.

The fund, established in 2019, is split into two programs: VidnovyDIM, which helps repair war-damaged homes, and EnergoDIM, which co-finances grants to cut energy consumption and costs by installing new insulation, windows, and heating systems.

“Today, when Russia is shelling Ukrainian homes almost every night, the VidnovyDIM Fund program helps families cover the costs of repairing walls, roofs, and windows so that they can return home safely and with dignity,” EU Ambassador to Ukraine Katarina Maternova said.

“In parallel, through the EnergoDIM program, we continue to support the thermal modernization of old buildings, which allows us to reduce energy consumption and monthly costs.”

Since 2021, the fund has grown from 90 projects to 1,500 projects, in cooperation with homeowners’ associations,  and helped Ukraine save 300 kilowatts per hour in energy consumption– as much as the city of Chernivtsi consumes. The EEF has helped over 217,000 families modernize and repair their homes, of which half were covered by the VidnovyDIM program.

The new financing will improve the efficiency of grants, raise the grant size to meet demand, and help more people under Ukraine’s environmentally sustainable “Build Back Better” principle. The grant limit should increase to more than 200,000 euros, said Ukraine’s Development of Communities and Territories First Deputy Minister Alena Shkrum.

The EFF will now be able to resume requests, which were paused due to the high number of applications. Around 10% of Ukraine’s housing stock has been damaged or destroyed, while much of the country’s heating system is from the Soviet era and inefficient, with apartments unable to control the heating in the winter.

Ukraine’s energy grid has been targeted relentlessly by Russian attacks, causing widespread energy instability across the country. At the same time, bills have increased for electricity and heating, frustrating citizens who have already taken a financial hit due to the war.

The fund has modernized homes and schools to become more energy efficient, which not only cuts costs but also retains warmth during blackouts, said the Shkrum. More Ukrainians are beginning to understand the importance of energy efficiency due to Russian attacks, “which is why the fund should continue functioning, reforming, and developing further,” she added.

DTEK to build one of Europe’s largest energy storage facilities, company announces

Ukraine’s largest private energy company DTEK secured a $72-million loan to build one of the largest battery energy storage complexes in Eastern Europe, the company said on June 3.

The Kyiv IndependentDominic Culverwell

Ukraine warns of a nuclear disaster risk that could impact all of Europe. Moscow is reportedly considering reconnecting the Zaporizhzhia Nuclear Power Plant to the Russian energy grid despite serious technical problems, UNIAN reports.

According to Yury Sheiko, First Deputy Minister of Energy of Ukraine, the plant’s power units remain in cold shutdown and are not generating electricity. The station is still being powered by Ukraine’s energy grid.

“They have no spare parts, no equipment, and no idea how to maintain or repair it,” Sheiko stresses.

The situation is even more dangerous due to a lack of qualified personnel. Most Ukrainian specialists do not have access to the equipment, and the technical condition of the plant remains unknown.

“No repairs have been carried out. The plant is not ready to be restarted. It’s extremely risky,” he warns.

Ukraine believes that Russia is using the prospect of restarting the plant as a tool of nuclear blackmail, trying to pressure both Kyiv and the international community.

Earlier, Petro Andriushchenko, head of the Center for the Study of Occupation, reported that Russia may be preparing to connect the ZNPP to its own grid, constructing a power line to restore the plant’s full operation.

Meanwhile, IAEA Director General Rafael Grossi stated that the agency has no evidence that the plant is being reconnected to the Russian grid. He also noted that the ZNPP cannot be restarted due to a lack of cooling water for the reactors.

US Senator Richard Blumenthal compared Ukraine’s recent long-range drone attacks against Russian air bases to the 2011 raid that killed Osama bin Laden, Politico reports.

The Democratic senator from Connecticut Richard Blumenthal called the Spiderweb operation one of the great military achievements in recent years, according to Politico.

Blumenthal believes it refutes the “false narrative that Ukraine is losing the war.” He suggested the recent battlefield developments could influence Washington’s approach to Ukraine aid and potentially sway President Donald Trump, who the senator noted remains skeptical of increased support.

“They can strike air bases 4,000 miles from Ukraine; They can hit anywhere,” Blumenthal said. “Just in the skill and audacity of these attacks, it will rank with the United States raid on Osama bin Laden and the Israeli pager operation as one of the great military achievements in recent years.”

The White House has not commented on the Ukrainian strikes, though spokeswoman Caroline Leavitt previously emphasized that Trump was not informed about the operation in advance.

On 4 June, Blumenthal organized a closed-door briefing for senators alongside Republican Senator Lindsey Graham to discuss their sweeping sanctions bill targeting Russia and major energy customers including China and India. The Ukrainian delegation included Andriy Yermak, a top adviser to President Volodymyr Zelenskyy, and Deputy Defense Minister Serhii Boyev.

The bipartisan legislation, which now has 82 co-sponsors evenly divided between parties, proposes 500% tariffs on countries purchasing Russian oil and other products. Blumenthal described the sanctions package as potentially a “game changer” designed to increase pressure on Russia’s wartime economy.

The senator indicated Congress could move forward with the sanctions bill regardless of White House support, stating that events on the battlefield might shift momentum among lawmakers previously hesitant to increase aid to Ukraine.

A Ukrainian drone attack targeting energy infrastructure in Russian-occupied parts of Zaporizhzhia and Kherson oblasts overnight on June 3 caused widespread blackouts, according to Russian occupation authorities.

Yevhen Balytskyi, the Kremlin-appointed head of the occupied part of Zaporizhzhia Oblast, claimed that 457 settlements in the region were left without power, affecting more than 600,000 homes.

In neighboring Kherson Oblast, Moscow-installed proxy Volodymyr Saldo claimed that drone debris damaged substations near occupied Henichesk, as well as near Melitopol in Zaporizhzhia Oblast, resulting in power outages across 150 settlements.

Ukrainian officials have not commented on the claims, which could not be independently verified.

Kyiv's previous attacks on substations in Russia and Russian-occupied territories were aimed at undermining Moscow's ability to sustain its war effort.

Situated in southern Ukraine, Zaporizhzhia and Kherson oblasts have been partially occupied since the start of Russia's full-scale invasion. The regions' centers, the cities of Zaporizhzhia and Kherson, remain under Ukrainian control and are frequently targeted by Russian forces.

A Russian FPV (first-person-view) drone attack targeted first responders near Vasylivka in Zaporizhzhia Oblast, injuring at least 12 people, Governor Ivan Fedorov reported.

Russian propagandists split between downplaying devastating Ukrainian attacks and issuing threats

Russian officials and propagandists have chosen different strategies for dealing with the unprecedented Ukrainian drone attacks on Russian airfields that took place on June 1. The Security Service of Ukraine (SBU) said that, as part of an operation dubbed Spiderweb, it had destroyed or damaged 41 Russian aircraft parked at

The Kyiv IndependentOleg Sukhov

Ukraine's largest private energy company DTEK secured a $72-million loan to build one of the largest battery energy storage complexes in Eastern Europe, the company said on June 3.

Ukraine’s second most profitable bank, state-owned Oschadbank, state-owned Ukrgasbank, and PUMB will provide the funding for the project, which includes six energy storage installations across the country, totaling 200 megawatts to power 600,000 households.

Battery energy storage facilities are like a large power bank connected to energy grids, and are crucial for storing energy created by renewables like solar and wind for later use. The share of renewable energy in Ukraine's grid was about 10% before Russia’s full-scale invasion. Kyiv wants to up this to 27% by 2030.

Other similar energy storage systems in Eastern Europe include Lithuanian electricity transmission system operator Litgrid's 200-MW units launched in 2023 and a 55-MW battery energy storage system in Razlog in southwestern Bulgaria that went online in 2024.

The loan — DTEK's largest domestic loan agreement to finance new energy infrastructure — covers part of the construction costs for five of the installations and runs until Sept. 25, 2030. DTEK, owned by Ukraine’s richest man Rinat Akhmetov, will cover the remaining costs. PUMB is majority-owned by Akhmetov via his System Capital Management (SCM) Holdings.

"DTEK’s investments in new energy capacity are not only a response to current challenges but also a contribution to the long-term strategy of ensuring Ukraine’s energy resilience and independence. Our goal is not just to restore but to create modern and reliable energy that will become the foundation for the country’s economic development," DTEK CEO Maksym Timchenko said.

Last year, DTEK lost 90% of its energy generation capacities due to Russian attacks on energy infrastructure. In total, Ukraine lost 9 gigawatts of its energy capacity, around half of the country’s peak winter consumption, which facilitated discussions on the need to decentralize its energy sources.

The company sees battery energy storage facilities as a path to decentralization and unification with the EU. In March, DTEK announced it was building Poland’s first large electricity storage facility as part of its plan to establish a pan-European energy system connected to Ukraine.

DTEK has continued to invest in energy projects in Ukraine, most notably committing 450 million euros ($468 million) to expand the Tyligulska Wind Power Plant near the Black Sea coast in cooperation with Denmark's state-owned Export and Investment Fund. It marked the largest ever private investment in Ukraine’s energy sector.

Unlike other state-owned energy companies in Ukraine, DTEK hasn’t been able to secure funding from the European Bank for Reconstruction and Development (EBRD).

Cooperation with Ukrainian banks strengthens Ukraine’s energy security and potential, the company said.

"We recognize our responsibility as a bank that consistently supports the country, and we are doing everything we can to financially contribute to the development of new energy capacities. This is not just about investing in infrastructure — it’s about strengthening the strategic energy independence and security of our state," Serhiy Chernenko, Chairman of PUMB’s Board, said.

Russia’s budget deficit triples amid sanctions and low oil prices, Ukrainian official says

Ukrainian commissioner for sanctions policy Vladyslav Vlasiuk said international sanctions remain a key driver behind the decline in Russia’s energy revenues.

The Kyiv IndependentAnna Fratsyvir

There is currently no indication that Russia is preparing to restart operations at the occupied Zaporizhzhia Nuclear Power Plant in Ukraine, an official from the International Atomic Energy Agency (IAEA) said on May 29, despite concerns over recent reports of new Russian infrastructure around the facility, Reuters reported.

"Our teams continue to confirm there is no indication at the moment that there will be any active preparations for a restart of the plant now," an IAEA official told Reuters, speaking on condition of anonymity.

The comment follows Ukraine's protest to the IAEA over what it called an illegal Russian attempt to connect the facility to its own energy grid. Yurii Vitrenko, Ukraine's ambassador to the IAEA, said any such move would be a gross violation of international law and Ukrainian sovereignty.

Satellite imagery reviewed in a recent Greenpeace report and cited by the New York Times shows Russia has constructed more than 80 kilometers (49 miles) of high-voltage lines between the occupied cities of Mariupol and Berdiansk since February.

The group said this may be an effort to link the Zaporizhzhia plant to a substation near Mariupol, signaling potential plans to restart the facility and fully integrate it into Russia’s grid.

The Zaporizhzhia plant, located in the Russian-occupied city of Enerhodar, is Europe's largest nuclear facility and has been under Russian control since March 2022. All six of its reactors remain shut down as the war continues, and the site has faced repeated power outages and safety threats due to nearby shelling.

Restarting any of the reactors would require a stable supply of water and external power. The plant lost access to its main cooling source, the Kakhovka reservoir, when the dam was blown up by the Russian forces in June 2023. Wells now supply enough water for cooling during cold shutdown, but not for full operations.

"The plant lost its main source of cooling water, so the whole system cannot work as it was originally designed," the IAEA official said. "The consumption of water is orders of magnitude higher (when the plant is operating) compared to cold shutdown. We don't see any easy, quick fix for it."

In March, IAEA Director General Rafael Grossi told Reuters that restarting the facility could be feasible within months of a lasting ceasefire — something that remains elusive. Meanwhile, Ukraine and Russia are expected to meet in Istanbul for renewed peace talks on June 2.

Previously, the U.S. has reportedly proposed that control over the plant be returned to Ukraine before transferring its management to the U.S. to supply electricity to areas under both Ukrainian and Russian control. Moscow immediately rejected the suggestion, claiming it was in "very good hands" under Russian control.

Ukraine seeks US support in regaining control of Zaporizhzhia nuclear plant, joint energy projects

“We have a common interest with the United States to bring Zaporizhzhia NPP under Ukrainian control and start the operation of this nuclear power plant,” Energy Minister Herman Halushchenko said.

The Kyiv IndependentTim Zadorozhnyy

Russia has tripled its projected budget deficit for 2025 amid a sharp drop in oil revenues, driven by Western sanctions and plunging crude prices, President Volodymyr Zelensky's commissioner for sanctions policy, Vladyslav Vlasiuk, said on May 29.

According to Vlasiuk, the Kremlin has recently approved changes to its federal budget, increasing the planned deficit from 1.17 trillion rubles ($14.8 billion) to 3.8 trillion rubles ($48.3 billion), or from 0.5% to 1.7% of GDP.

"The reasons? Cheaper oil and a strengthening ruble, which together are slashing oil and gas revenues by nearly a quarter — a loss of 2.6 trillion rubles ($33 billion) from the original forecast," Vlasiuk wrote in a statement. He pointed to a revised price forecast for Russia's Urals crude, cut from $69.70 to $56 per barrel.

Reuters reported earlier this month that Urals and ESPO crude blends dropped to $48.90 per barrel — the lowest level in two years and about 40% below the $82.60 price Moscow had initially budgeted for 2025.

Vlasiuk said international sanctions remain a key driver behind the decline in Russia's energy revenues. "Sanctions against Russia are working," he said. "This is confirmed by many indicators, and we are grateful for all the work that has already been done."

Ukraine has long been advocating for tighter sanctions against the Russian energy sector, particularly its shadow fleet. Despite hundreds of Russian tankers already under sanctions, many vessels remain operational and continue to ship Russian oil.

"Half of the sanctioned shadow fleet is still functioning," Vlasiuk said, calling for expanded measures — including sanctions on Russian ports, terminals, and even individual ship captains.

Russia's energy sector, which provided nearly 30% of the federal budget in early 2024, has been hit by drone strikes from Ukraine and increasing global pressure. The recent plunge in prices followed new tariffs announced by U.S. President Donald Trump on April 7, which spurred fears of a global recession and dragged oil prices to their lowest levels since May 2023.

Speaking on May 5, Trump claimed that Russia had become more willing to negotiate an end to the war in Ukraine due to falling oil prices. "I think Russia, with the price of oil right now, oil has gone down, we are in a good position to settle, they want to settle. Ukraine wants to settle," he told reporters.

The financial strain comes as Moscow boosts defense spending by 25% for 2025, raising it to 6.3% of GDP — the highest share since the Cold War. The Kremlin has acknowledged the challenges, with spokesperson Dmitry Peskov calling the global market conditions "extremely turbulent" and vowing economic measures to "minimize the consequences."

For Ukraine, Vlasiuk said the latest data sends a clear message: "We are grateful for all the work done so far... But if we want to level up, more needs to be done."

The U.S. recently blocked a G7 push to lower the $60-per-barrel price cap on Russian oil exports, the Financial Times reported on May 27. The cap, imposed by the G7 and EU in December 2022, bars Western firms from servicing Russian oil sold above that price to limit Moscow's war funding.

While Canada, the EU, and key G7 members supported tightening the cap, the proposal was dropped after U.S. Treasury Secretary Scott Bessent withheld support. The European Commission had reportedly planned to propose cutting the cap to $50.

Sanctions on Russia are working, Ukraine just needs more

Sanctions on their own won’t end the war, but they are a crucial tool in the West’s efforts to pressure Putin.

The Kyiv IndependentDominic Culverwell