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Russia ready to consider any proposals from partners on oil deal

The next meeting of the Joint Ministerial Monitoring Committee will be held on July 24 in St. Petersburg

MOSCOW, July 7. /TASS/. Russia is ready to consider any proposals of partners on the parameters of the agreement on the reduction of oil production, a representative of the Energy Ministry told reporters.

The next meeting of the Joint Ministerial Monitoring Committee (JMMC) will be held on July 24 in St. Petersburg.

"The JMMC will elaborate on any proposals in regard to upcoming or additional steps assessing their timeliness, necessity and effectiveness. Russia is ready to consider partners' proposals, including ones on possible amendments to some of the terms of the May 25th accords if this is deemed necessary and effective," the Ministry’s representative said.

It was reported earlier that Russia intended to adhere to the terms of the current deal with OPEC and was ready to oppose possible additional cuts.

However, the Energy Ministry refuted these allegations and called them speculative. "Due to a recent increase in frivolous interpretation by a number of media of Russia's position in regard to the global oil market stabilization initiative, carrying a clearly speculative nature, we deem necessary to make a clarifying comment," the Ministry’s representative said.

According to the representative, Russia currently considers the initiative to be effective and that it helps to reduce commercial oil reserves in the world and stabilize oil markets. "The next JMMC meeting is scheduled for 24th July in St.Petersburg where a number of topics will be discussed, among them the latest market monitoring details based on June 2017 data. It has also been earlier noted that the JMMC has seen its mandate expanded, allowing it to make recommendation on possible additional steps if deemed necessary, in addition to its market monitoring task,"

Russian Energy Minister Alexander Novak told reporters earlier he does not consider it necessary to change the parameters of the deal to reduce oil production. "Despite the recent drop of oil prices, we believe that the OPEC+ deal is effective, we are seeing a decline of world oil reserves. Therefore, for now we do not see the need for deviating from the parameters of the agreements reached on May 25. Responding to momentary fluctuations may give the market incorrect signals," he said.

At the end of 2016, OPEC and 11 independent exporting countries, including Russia, concluded a deal to reduce oil production. According to the agreements, during the first half of 2017 the participants were to withdraw 1.8 mln barrels per day from the oil market (against the level of October 2016).

At the meeting in Vienna in May 2017, the countries extended the agreement until the end of March 2018 with the goal to reduce global oil reserves to five-year average levels.