Russia announced on Sunday a voluntary cut in its oil production of 471,000 barrels per day at the end of the second quarter, a decision taken “in coordination” with other OPEC countries to “support” world prices. Russia will implement a voluntary “additional” reduction in its production of 350,000 barrels per day in April, 400,000 in May and 471,000 in June, said Russian Deputy Prime Minister in charge of Energy, Alexander Novak, quoted in a statement.
Regarding exports, the reduction will concern “121,000 barrels per day” in April and “71,000” in May, according to the Russian leader. The Russian Deputy Prime Minister specified that this new voluntary reduction in production “is added” to that of 500,000 barrels per day already announced by Russia in April 2023 and which runs until the end of 2024. It “reinforces precautionary efforts deployed by OPEC countries with the aim of supporting the stability and balance of oil markets,” explained Alexandre Novak in the press release published by the Russian government.
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Russia, pillar of the alliance of oil exporting countries (OPEC), has in recent months adopted a policy aimed at stopping the fall in prices. Because despite a less significant share in the federal budget than before the conflict in Ukraine, the financial windfall from the sale of hydrocarbons remains essential for Moscow at a time when its economy is focused on the war effort to support its military assault in his neighbour. Kiev’s Western allies have imposed heavy sanctions targeting the Russian energy sector for two years, forcing Moscow to redirect its exports en masse towards Asia, and in particular these two behemoths, China and India.