Michael Bernstam discusses how August is historically a "month of curses" for Russia, citing the 1991 coup and the 1914 start of WWI. Currently, Russia is facing a severe fiscal and production crisis driven by Ukrainian drone strikes that have crippled 25

Michael Bernstam discusses how August is historically a "month of curses" for Russia, citing the 1991 coup and the 1914 start of WWI. Currently, Russia is facing a severe fiscal and production crisis driven by Ukrainian drone strikes that have crippled 25% of its oil refining capacity. Additionally, Ukrainian drones recently destroyed a massive Wildberrieswarehouse—Russia's equivalent to Amazon—stripping a million vendors of their livelihoods and stressing the banking sector. Meanwhile, Saudi Arabia is in fiscal trouble due to its $1.5 trillion "The Line" project and Houthi attacks on its pipelines. This pressure is leading the Saudis to urge the Trump administration toward concessions with Iran to reopen the Strait of Hormuz and stabilize oil flows. Bernstam notes that while the EU has frozen the Russian oil price cap at $44.10, the real impact on Russian revenues will come from any reduction in world oil prices. (1)