MOSCOW: Russia announced Tuesday that it was extending the oil production cuts of 500,000 barrels per day until the end of June, a retaliation to Western countries’ sanctions that was due to expire at the end of this month.
Alexander Novak, deputy prime minister in charge of energy issues, said that in accordance with the market situation, the decision to voluntarily cut production by 500,000 barrels per day will remain in place until June 2023 inclusive.
Novak announced the oil production reduction, which amount to about 5%of daily output, in February after the West announced new sanctions on Russian oil.
Novak added that, at the moment, Russia is near to achieving the target level of reduction.
The West has imposed a number of sanctions against Russia since its deployed troops to Ukraine.
Penalties on oil industry
The penalties aimed at Russia’s oil industry are to strip Moscow — one of the world’s high energy producers — of a big source of revenue to fund its military.
The International Energy Agency (IAE) said this month that Russia’s oil-export revenue decreased by almost half in February compared to last year.
