”Kommersant”: Due to sanctions, Russia may reduce oil production by a third

Due to sanctions and low demand, Russia may reduce its own oil production by 20-30%. This is about 7-8 barrels of oil per day.

This was reported by the Russian newspaper "Kommersant".

According to Lukoil Vice President Leonid Fedun, if Russia imposes an oil embargo, it will not make sense for Russia to produce so much oil. However, he believes that soon the worldʼs demand will be higher and oil prices will rise, so Russia will not lose revenue to the state budget.

In addition, Fedun believes that Russian oil will be difficult to replace with Iranian, because Russiaʼs global share in the oil market is much higher. The Ministry of Finance of the Russian Federation predicts that Russia will lose up to 17% of oil production in 2022.

• The European Commission has sent to the EU governments a revised proposal for the sixth package of sanctions against Russia. It is proposed to exclude the Druzhba oil pipeline from the draft embargo (due to Hungaryʼs position) and to ban the sea transportation of oil from Russia. The EU has been unable to approve an oil embargo for more than a month due to a veto by Hungary, which is almost entirely dependent on Russian oil and wants more benefits.