Geopolitical shocks rarely stay contained, and the latest Ukrainian drone strikes on Russian refineries are a reminder that energy supply risk can quickly ripple across global markets. Disruptions to Russian fuel production, tighter supply and rising volatility in energy prices are feeding through to specific stocks that are closely tied to Russian fuel infrastructure or global energy trading. This article unpacks three of them, explaining how the same headlines can create pressure for some companies and potential opportunity for others, and what that might mean if you are considering investing in, or steering clear of, these stocks exposed to the current news.

KLM Royal Dutch Airlines (KLMR)

Overview: KLM Royal Dutch Airlines is a global airline group that carries passengers and cargo, runs charter and scheduled flights through Transavia, and provides aircraft maintenance, catering and ground handling services for its own fleet and third-party clients, all as part of the wider Air France KLM group.

Operations: KLM Royal Dutch Airlines generates most of its €13.2b business revenue from its Network segment at €10.6b, with additional contributions from Maintenance at €2.4b, Leisure at €1.4b and Other services at €293m, partly offset by €1.6b of eliminations.

Market Cap: $37.45b

KLM Royal Dutch Airlines sits at the crossroads of global travel demand and energy market volatility, which makes it relevant when fuel supply risks rise. The company reported €13,175m of revenue and €283m of net income for 2025, with earnings per share of €6.06 and an improved 2.1% net margin, while Return on Equity is high at 23.7%. On paper, the stock screens as very cheap, with a 0x P/E and a Simply Wall St fair value estimate well above the current share price. However, investors also face clear red flags. Extremely high headline dividend yield without firm cash flow backing, reliance on higher risk external funding and illiquid trading all mean the upside story needs careful scrutiny.

Cheap on a 0x P/E with a 23.7% Return on Equity, KLM Royal Dutch Airlines looks like it might be mispriced, but the headline dividend and funding risks complicate the picture. As a result, it is worth reviewing the 2 key rewards and 3 important warning signs (2 are major!)

Gazprom Neft (MISX:SIBN)

Overview: Gazprom Neft is an integrated Russian oil and gas company that explores for, produces, refines, and sells crude oil, gas, and a wide range of petroleum products, while also operating a large retail network of 1,870 fuel stations across Russia and multiple international markets as a subsidiary of PJSC Gazprom.

Market Cap: RUB1,841,435.4m

Gazprom Neft sits at the heart of Russia’s fuel infrastructure just as Ukrainian drone strikes are exposing how fragile that system can be, with refinery damage, fuel shortages and rationing raising questions over how secure its output and exports really are. The stock appears very cheap on earnings, supported by a very large one-year profit rebound and a 20.5% Return on Equity. However, investors are working with financials that are more than six months old and an unstable dividend record. In addition, there is 100% reliance on external borrowing, illiquid trading and a board with no independent directors, so the picture is far less straightforward than the valuation alone suggests.

Gazprom Neft’s cheap earnings and profit rebound can mask how fragile 100% external borrowing, sanctions risk and governance concerns might be. Before relying on the headline numbers, read the 2 key rewards and 3 important warning signs (1 is major!)

PJSC LUKOIL (MISX:LKOH)

Overview: PJSC LUKOIL is a large Russian oil and gas group that explores for and produces crude oil and gas, refines them into fuels and petrochemicals, and then markets and distributes those products through wholesale channels and a retail network of 5,005 filling stations across 19 countries, while also generating and selling electricity and heat.

Market Cap: RUB2,534.1b

PJSC LUKOIL has several notable characteristics. The stock is trading well below an estimated fair value, the P/E is low compared with European peers, and earnings have recently increased. However, the current refinery attacks and fuel shortages in Russia affect the core of its refining heavy model and could pressure operations, particularly when visibility is already limited by older financials. A net margin of 8.3% and Return on Equity of 17.1% indicate a solid profit base. At the same time, all liabilities funded by external borrowing, an unstable dividend record, illiquid trading, and share price underperformance compared with the Russian market and sector raise questions about how easily investors can enter or exit positions or rely on income. For readers weighing whether this valuation gap represents an opportunity or a value trap, the full risk and reward profile is important to consider.

PJSC LUKOIL’s low P/E and refinery exposure could be masking where the real pressure sits, especially with all liabilities funded by external borrowing. Before assuming the discount is harmless, read the 2 key rewards and 3 important warning signs (1 is major!)

Take Control of Your Investment Journey

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Seeking Fresh Alternatives Before Others Do

New breakout stories and dropping laggards can sometimes be identified early. When momentum accelerates, the most attractive entry points may disappear before a wider group of investors reacts. These curated shortlists stay under the radar for now, so review them while they are still less widely followed.

• Look for early momentum in smaller companies before they attract more institutional attention by scanning the 21 elite penny stocks with strong financials that may be quietly improving their financial position and operations.
• Evaluate potential technology developments in advance by reviewing the 51 AI infrastructure stocks focused on data centers, chips and connectivity while many investors are still concentrating on headline AI stocks.
• Explore income opportunities while prices are still adjusting by examining the 8 dividend fortresses featuring higher yields and balance sheets structured to navigate periods of stress.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.