Russia’s oil production is on track to drop to an 18-year low this year as Western sanctions and departing foreign oil companies complicate extraction and reduce demand.
Finance Minister Anton Siluanov told reporters Wednesday that Russian oil output could decline 17% this year.
“How sales will be conducted further is difficult to asses now,” Siluanov was quoted as saying by the state-run TASS news agency.
Russia produced an average of almost 11 million barrels per day before the war, making it the world’s third largest producer.
Siluanov’s projection means Russia looks set to produce an average of 9.13 million barrels per day this year, the lowest since 2004.
President Vladimir Putin has vowed to find alternative markets for Russia's energy exports as the Russian oil dependent European Union debates a possible embargo.
Russia's energy minister has warned that a ban on Russian oil would lead to “catastrophic” consequences for the global market.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
