THE Russia announced today that it will voluntarily cut its oil production by 471,000 barrels per day at the end of the second quarter of this year, a decision it made “in coordination” with other OPEC countries to support global prices.
Russia will implement an “additional” voluntary production cut of 350,000 barrels per day in April, 400,000 in May and 471,000 in June, Deputy Prime Minister for Energy Alexander Novak announced.
As for exports, the reduction will be “121,000 barrels per day” in April and “71,000” in May, according to the Russian leader.
The deputy head of the Russian government clarified that this new voluntary production cut is “in addition” to the 500,000 barrels per day already announced by Russia in April 2023 and valid until the end of 2024.
“It comes to reinforce the precautionary efforts being developed by the OPEC+ countries with the aim of supporting the stability and balance of the oil markets,” says Novak in the statement issued by the Russian government.
Russia, a pillar of the alliance of oil-exporting countries, has been pursuing a policy in recent months aimed at halting the fall in prices.
That’s because despite the fact that the financial windfall from the sale of hydrocarbons is less important to the federal budget than it was before the conflict in Ukraine, oil revenue remains important to Moscow as its economy shifts toward the war effort to support the military attack on its neighbor.
Kiev’s Western allies have been imposing heavy sanctions on the Russian energy sector for two years, forcing Moscow to massively reorient its exports to Asia, especially China and India.
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