19 May 2022 11:24

Russia sees neither problems nor crisis in oil output, seeking new export opportunities - Novak

MOSCOW. May 19 (Interfax) - Russia does not see any serious problems nor a crisis in oil output, and the country is seeking new export opportunities, partners, and financing, Deputy Prime Minister Alexander Novak said during the New Horizons marathon.

Novak noted that Russia is redirecting oil exports to new markets, is resolving issues of logistics and finance, and companies are confident. Meantime, Russia has nearly restored oil exports.

European Union countries will remain consumers of Russian oil, though they will buy it on other markets and pay more for it, Novak said.

"The same oil that they [the EU countries] bought from us will have to be purchased elsewhere, and they will pay more, because the prices will definitely rise; and once the cost of delivery and freight increase, it will be necessary to invest in building the corresponding infrastructure," Novak said at the forum.

Around half of the importers of Russian gas have already opened ruble-denominated accounts with Gazprombank in order to remit payment under the new procedure, Novak said.

"This is a forced measure in order to ensure the safety of our export revenue, because the actions of some countries have resulted in risks regarding export earnings," Novak said.

Novak added that over 50 large, medium, and small companies overall purchase Russian gas, and about half of them have already opened accounts with Gazprombank in order to pay under the new procedure.

"Individual large companies have opened, paid, and are ready to pay. In the coming days, we will see the final list regarding who has paid for gas in rubles and who has refused to pay," Novak said.

Novak also said that Russia's oil output fell by 1 million barrels per day in April.

According to him, production volumes have been recovering by 200,000-300,000 bpd in May, and further output growth is expected in June.