Moscow predicts more than 9% reductions in oil production in 2022 and 2023

Moscow predicts crude oil production reductions of 9.3% this year and 9.8% in 2023 due to the partial embargo enacted by Brussels on Russian oil and petroleum products, it was announced this Monday.

According to new budget guidelines from the Russian government, Russia will produce 9.3% less this year (to 475.3 million tons) and 9.8% less next year (to 472.8 million tons).

In the draft budgetary, fiscal and tariff policy for 2023 and the periods 2024 and 2025, reported by the official TASS news agency, the reduction in crude oil production is also affected by discounts on sales of Russia’s main exports, according to with the Russian Ministry of Finance.

In 2021, Russian oil production reached 524 million tons, and since the spring of 2021, Russia has been gradually increasing production due to the OPEC+ (Organization of Petroleum-Producing Countries) alliance agreements. [OPEP] and 10 allies, including Russia).

But since last March, Russia has faced unprecedented international sanctions over its military campaign in Ukraine, which affect the logistics chain, finances, ship insurance and the ships themselves, which cannot dock in European Union (EU) ports. .

In addition, the EU decided at the leaders’ summit earlier this month to ban the purchase, import or transfer of oil and certain petroleum products from Russia by sea to the EU bloc.

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