RT.com
16 Mar 2023, 23:44 GMT+10
Output will slow as Moscow reroutes EU-bound flows to other markets, the official said
Russia projects a decline in its oil and gas output this year compared to 2022, partly due to the announced production cut, Energy Minister Nikolai Shulginov said on Wednesday.
In February, Russia announced it would voluntarily reduce oil production in March by 500,000 barrels per day in response to Western sanctions as it halted sales to buyers complying with an imposed price cap. Moscow said the move was designed to restore market relations shattered by the scheme, which it branded "illegal."
Addressing the Russian Parliament, Shulginov said that for 2023 he expected "oil production levels to be slightly lower, because of the voluntary reduction in output." The minister added that "gas production volumes will continue to decline, both due to the abandonment of the European market and the timing of the rerouting of energy flows to the East."
Russia's decision to reduce its oil production this month will help balance the global oil market, which is in a surplus now, Alexander Dyukov, the chief executive of Russian oil company Gazprom Neft, a subsidiary of Gazprom, said last month.
Oil production in Russia rose to 535.1 million tons last year from 524.5 million tons in 2021. Gas production dropped to 674 billion cubic meters (bcm) in 2022 compared to 763 bcm in the previous year.
In January Russia's oil exports surged to an all-time high previously reached in February 2020 despite the Western embargo on Moscow's seaborne crude as customers were rushing to boost their stocks of the commodity, a report by the International Energy Agency showed.
Meanwhile, other major oil producers like Saudi Arabia and Algeria have warned that Western sanctions such as the price cap on Russian oil will spark uncertainty and disrupt global trade flows.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Belfast Bulletin news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Belfast Bulletin.
More InformationLONDON, U.K.: Amazon has once again been rated the worst major UK grocery retailer by its suppliers when it comes to following fair...
New Delhi [India], June 28 (ANI): The percentage of zero-dose children (Those who have not received a single vaccine) in India has...
Lyons welcomes start of works on Pound 70m Queen's Parade project Date published: 30 June 2025 ...
DAERA gets green light for legislation to support local fruit and veg growers Date published: 30 June 2025 ...
Pound 250,000 fund launched to help unlock environmental and economic opportunities for layer manure Date published: ...
Lee Jarvis and Tim Legrand Download PDF Jun 27 2025 0 viewsfredduval/Shutterstock The UK governments proposal to ban the group...
DOVER, Delaware: California Governor Gavin Newsom has taken legal aim at Fox News, accusing the network of deliberately distorting...
FRANKFURT, Germany: Germany has become the latest country to challenge Chinese AI firm DeepSeek over its data practices, as pressure...
TORONTO, Canada: Harvard University and the University of Toronto have created a backup plan to ensure Harvard graduate students continue...
JERUSALEM, Israel: Israeli Prime Minister Benjamin Netanyahu says that Israel's success in the war with Iran could open the door to...
NEW DELHI, India: India has decided not to allow a United Nations (UN) investigator to join the investigation into the recent Air India...
BONN, Germany: Despite widespread belt-tightening across the United Nations, nearly 200 countries agreed this week to increase the...