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Russia to announce oil cuts to foreign markets next week — Deputy PM

In March, Russia began to voluntarily cut oil production by 500,000 barrels per day from its February average volume
Russian Deputy Prime Minister Alexander Novak Ramil Sitdikov, Sputnik, Kremlin Pool Photo via AP
Russian Deputy Prime Minister Alexander Novak
© Ramil Sitdikov, Sputnik, Kremlin Pool Photo via AP

MOSCOW, August 31. /TASS/. Russia has agreed with OPEC+ countries on a new deal to reduce supplies of its oil to foreign markets, which will be published next week. Deputy Prime Minister of Russia Alexander Novak said this at a meeting held by Russian President Vladimir Putin.

"Yes, we have reached an agreement. But we will publicly announce the main terms next week," he said, answering Putin's question whether the government managed to agree with OPEC partners on reducing Russian oil supplies to foreign markets.

Earlier, Novak did not rule out that Russia could extend voluntary commitments to limit oil supplies to international markets until October, but noted that it was too early to talk about it. He added that in August, the country fulfilled all its obligations. Novak also clarified that Russia was reducing oil supplies to the world market compared to the average value of this indicator in May-June 2023.

In March, Russia began to voluntarily cut oil production by 500,000 barrels per day from its February average volume. The cuts were extended several times - first until and through June, then until the end of 2023. After the OPEC+ meeting, which took place on June 4 in Vienna, the voluntary reduction of oil production was extended until the end of 2024.

In August, Russia is to cut oil supplies to world markets by 500,000 barrels per day in addition to its obligations to reduce production; in September, it intends to reduce exports by 300,000 barrels per day.

Earlier, Novak said that Russian oil companies would independently decide whether to reduce oil production or exports in August as part of the task of reducing supplies.