27 Apr 2022 17:30

Potential reduction in output, export of gas from Russia balanced out by price growth - Siluanov

MOSCOW. April 27 (Interfax) - Any possible reduction of output and export of gas from Russia is balanced out by the price of gas growing, although it is currently difficult to make long-term forecasts, Russian Finance Minister Anton Siluanov said.

Journalists asked the minister whether the risks of a number of countries turning down Russian gas due to refusal to accept the new arrangement of paying for it in rubles are accounted for in the latest budget projections.

"We didn't figure that in, how could we factor in what countries are going to decline and which aren't? We understand that if Western countries are going to say no, we'll look for other sources of demand for our energy resources. If they're turned down in one place, we'll sell in other places," Siluanov said.

"Will there be a reduction in output? There will be a reduction in output. At what volumes? A little more, a little less than 17%? Possibly, yes," Siluanov said, commenting on predictions that gas production in Russia will go down 17% in 2022, which is, according to Reuters, the assessment of the Economic Development Ministry.

"That we have taken into account the current situation with the exchange rate, output volumes, and prices on energy resources, that's taken into account in our forecasts. How energy sales will be conducted further, it's hard to evaluate for now. You say that Poland, let's say, has refused. Poland has refused, but our forecasts took into account one price for gas, now they see how [prices are going up] - volumes are going down, prices are growing. On the whole, our companies more or less have a balance," Siluanov said.

"What kinds of prospects there will be until the end of the year - it's difficult to say right now," he said.