17 Jun 2022 14:52

Russia stabilizes oil production, to reach pre-crisis level by end-2022 - Novak

ST. PETERSBURG. June 17 (Interfax) - Russia has managed despite the sanctions to stabilize oil production by adjusting operating processes and working with new partners, Deputy Prime Minister Alexander Novak told the Rossiya 24 TV channel.

"Today we can confidently say that by the end of this year that drop we had [since the start of the pandemic] will be restored. We are moving towards that gradually, including in the OPEC+ framework," he said.

The situation is complicated by the "tectonic changes' in global markets, due largely to the political decisions and sanctions against energy resources from Russia and other countries, he said.

Even so, Russia has managed to surmount these barriers by working with new partners. Novak said Russia might reach the February oil production level of 10.2 million barrels per day as early as June.

He said the difficulties faced by Russian oil companies had peaked. That happened in March, when there were not yet any sanctions on exports, but buyers and European traders themselves refused to work with suppliers from Russia.

"Nature abhors a vacuum. New traders have emerged - not European but Russian and Asian. Our companies have adapted in my opinion, and we have emerged from this situation in the space of four months, we have restored production. Our companies have adapted, they have found new forms and means of working with counterparties, via traders and directly," Novak said.