Leaders from the Association of Southeast Asian Nations (ASEAN) and Russia concluded their first in-person summit in eight years on Thursday with a commitment to strengthen energy ties, expand trade and investment, and pursue long-term commercial partnerships aimed at diversifying supply sources and reducing exposure to market shocks.

The agreement comes as many Southeast Asian economies grapple with the impact of supply disruptions stemming from the closure of the Strait of Hormuz, a key global energy transit route. The region remains heavily dependent on Middle Eastern crude, with around 60% of Southeast Asia’s crude oil imports originating from the Gulf.

In a joint statement issued after the summit, ASEAN and Russia voiced concern over rising global energy insecurity driven by geopolitical tensions, supply-chain disruptions and market volatility. The two sides also agreed to enhance crisis preparedness, cooperate on energy-transition initiatives and expand engagement in civilian nuclear energy.

Russian President Vladimir Putin, who hosted ASEAN leaders in Kazan, said Moscow was prepared to increase exports of value-added products to Southeast Asian markets, including fertilizers, pharmaceuticals and energy resources.

“Of course, we remain committed to supplying our Asian friends with food products and energy resources, which have been enjoying so much demand,” Putin said at a joint press conference with Philippine President Ferdinand Marcos Jr.

The energy partnership has gained urgency as regional economies face higher fuel costs and supply constraints. The Philippines, for example, imports more than 90% of its crude oil requirements from Gulf producers, leaving it particularly exposed to disruptions in Middle Eastern supply routes.

Indonesian Foreign Minister Sugiono said ASEAN viewed Russia as an important partner in strengthening regional energy resilience and broadening access to alternative sources of supply.

“We seek cooperation that diversifies our sources, strengthens our supply chains, and shields our region from external shocks,” Sugiono told the summit’s plenary session.

Analysts said Russia’s role as a major energy exporter could become increasingly attractive for Southeast Asian governments seeking to mitigate risks associated with geopolitical instability in traditional supply regions.

Chester Calabaza, founding president of the Manila-based International Development and Security Cooperation think tank, said the recent disruption to Middle Eastern energy flows had increased interest in Russian supplies among ASEAN economies pursuing broader energy-security strategies.

Russia’s outreach to ASEAN comes as Moscow seeks to deepen economic engagement with Asia and expand markets for its energy exports, while Southeast Asian governments look to diversify procurement channels amid heightened uncertainty in global energy markets.

Small retailers enter the holiday season with shrinking inventories, rising costs, and shifting supply chains as tariff uncertainty reshapes their busiest months.

For many small U.S. retailers, the year-end shopping season has turned unusually unpredictable as shifting tariff policies on Chinese imports disrupt supply chains.

Businesses that rely heavily on China for production say they are struggling to secure adequate stock, leaving them vulnerable during the most profitable period of the year.

Matt Hassett, founder of New York-based sleep wellness brand Loftie, said the rapid tariff changes have left his company operating with only a fraction of the inventory required.

He explained that holiday preparation became increasingly difficult, with product deliveries delayed and stock levels hitting their lowest point in years.

A major challenge emerged when tariff rates on Chinese goods fluctuated dramatically, forcing small companies to choose between paying high import duties or moving production to alternative countries at an even greater cost.

Some retailers considered shifting manufacturing to markets like Thailand, India or Cambodia, only to find that new supply chains carried higher expenses and longer timelines.

The constant changes eventually pushed many businesses back to their original suppliers in China, but the back-and-forth decisions created delays.

As a result, companies entered the holiday season — including Black Friday — with lower-than-expected inventory and reduced capacity to meet consumer demand.

November and December typically contribute up to one-third of annual retail profits in the U.S. With smaller companies already operating on tighter margins, inventory shortages risk pushing them further into financial strain.

Brooklyn-based travel brand Lo & Sons spent months exploring multiple manufacturing hubs across Asia in response to tariff threats.

Despite efforts to diversify production, the company returned to its long-term Chinese supplier, citing the unpredictability of tariff rates as a primary challenge.

The uncertainty prevented firms from placing purchase orders early in the year, resulting in significant delays.
Executives say they now face lower stock availability and higher costs during their most critical sales window.

Meanwhile, large U.S. retailers such as Walmart and Costco are better positioned to manage disruptions, thanks to greater leverage and financial resilience.

Their scale allows them to absorb higher duties more smoothly, widening the competitive gap between major chains and small independent businesses.

Recent data shows that operating margins for small retailers with assets under $50 million have dipped sharply into negative territory.

The shift has placed over one-third of these companies at high risk of bankruptcy, underscoring the growing financial pressure across the sector.

Some small brands have been forced to make difficult decisions to cope with rising costs.
This includes cutting jobs, reducing product lines and decreasing order volumes to preserve cash flow heading into 2026.

New York jewelry company Haus of Brilliance moved part of its production to Thailand and the United States after facing high tariffs in India, one of its main manufacturing bases.

The company completed its first Thai production run just in time for the holidays, but it still anticipates shortages well into the new year.

Loftie’s Hassett expects a shipment to arrive for Black Friday, but the delay has already cost the company a significant number of sales.
He estimates that with adequate inventory, the brand could have earned nearly 50% more revenue this season.

Across the retail landscape, rising costs, fragile consumer sentiment and rapid policy changes are creating an environment of instability.

Small retailers say they are adapting as best as they can, but many remain concerned about long-term sustainability if tariff swings continue.